Question: Discuss how the policy change would impact individuals of different income levels.
Classmate Dhamane's response: The Medicaid insurance program and some other universal health care systems can be compared on various factors. I would like to focus on the Canadian Healthcare System - the closest neighbor of the U.S.
With respect to the funding, Canada's national government "matches" it's level of funding to the funds spent by the provinces on hospital and physician services. Similarly, under the Medicaid program the U.S. federal government provides funding to the individual states ranging from $1 to $3 for every dollar spent by the states. [1] At the same time, the level of funding provided by the U.S. federal government is significantly more than Canada. In 2015, the U.S. Medicaid matching payment to states $344 billion, or $1,071 per American compared to the Canadian block grant to provinces of US$26 billion, or US$716 per Canadian. [2, 3] Another difference is the covered individuals. The Canadian healthcare system insures individuals of all ages, whereas the Medicaid reform only covers low-income or disabled individuals. [4]
The impact of such block grants on consumption of healthcare services can be phenomenal. Based on a recent article in the Health Affairs Journal, the states would likely cut back their Medicaid medical expenditures due to restricted federal funding. [5] This would lower the consumption of medical services, but it may also adversely affect the healthcare quality if the necessary services are not provided.