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The work to reform Medicaid spending continues, according to State Rep. Jim Hoops, who chaired a House committee that crafted several Medicaid improvements, which were incorporated into the state budget last summer.

In the last biennial budget, Medicaid growth was held under 1 percent for 2006 and 2.3 percent for 2007. Growth in the previous five years had been over 12 percent annually, according to Hoops. The Napoleon Republican credited Ohio Farm Bureau for being part of the coalition that successfully sought Medicaid reform.

The slowdown in spending was needed, Hoops said, because "the baby boomers are coming." He added, " The demographics of this state and this country are changing where in the next 10 years you're going to have 75 million more people turn 65." Hoops said additional reforms will be needed because Ohioans don’t want to be overly burdened by taxes.

"There’s Medicaid services we need to have available but at the same time, we have to try to balance that so that we keep Ohio competitive, so that business will want to come here and that people will want stay here and live in Ohio," he said.

Hoops said the General Assembly will spend 2006 monitoring the outcome of the changes made via the budget and looking more closely at how Medicaid operates. "You have to look at the three big areas of what's growing in Medicaid. One is long-term care, another one is prescription drugs and the third one is in the cost of hospitals, in-patient and out-patient," he explained.

Giving people who need long-term care more choices would positively affect quality of life for those who need this type of service, according to Hoops. And it makes sense for taxpayers.

"When you look at the price, it costs about $55,000 per year for an individual in the nursing home, it costs maybe about the mid $20s for assisted living and right around $13,000 to $15,000 for people who stay at home under the Passport system," he said. Passport is Ohio’s program for providing assistance in the patient’s home.

Because Medicaid is a joint federal-state program, Hoops said it’s a challenge is getting Washington rule makers to allow Ohio more flexibility in utilizing Medicaid dollars. He sees progress. "What we're finding is the federal government is becoming more lenient basically to allow the state to become more creative."

Other areas Hoops thinks will help curtail Medicaid expenses are by becoming more efficient in paying nursing home costs and expanding the use of lower cost generic drugs.

Opponents of Medicaid reform often say that by reducing spending the state is hurting those who are most needy. Hoops disagrees. "I think we can show that we're continually going to have those services. However, I also tell these individuals that we cannot continue to keep spending, increasing this budget because we're getting to the point where we're at the wall. If we continue to move in this direction there isn't going to be anything around anymore. Because what you're going to start seeing is an exodus of businesses, an exodus of individuals, taxpayers who are going to leave this state because they don't want to deal with high taxes. And so we're trying to control (Medicaid) spending by being more efficient ... so we do not have to cut the services for the ones who really need it."

Caption: State Rep. Jim Hoops told Buckeye Farm News he believes Ohio can meet Medicaid recipient’s needs while also holding down costs to taxpayers.