An interim policy on Medicaid reform has been adopted by the National Governors Association, although the group won't participate on the Medicaid commission being created by HHS Secretary Mike Leavitt, saying its members felt it would be "most effective to continue their work as an independent bipartisan group."
The policy calls for changes to prescription drug programs including increased rebates from drug manufacturers; greater scrutiny of beneficiary assets when using Medicaid to pay for long-term-care coverage and changing the program's cost-sharing rules to require higher out-of-pocket costs for beneficiaries. The association also called for the creation of a tax credit for low-income individuals to help pay for health insurance.
The governors will meet this summer to work toward finalizing the policy. View the association's interim Medicaid reform policy.