Medicaid….what is it?

Posted by

I found a website that provides a great deal on information on Medicaid.

Did you know that Medicaid is source of funding for nonprofits, and is jointly financed by federal and state governments?  The States use it as a source of support for social services programs.

“Every $1.00 that a State spends on Medicaid-eligible social services brings with it at least $1.00 in federal matching funds, with the average State receiving about $1.33 in matching funds.”

“Medicaid reimbursement rates also provide resources for nonprofit social service organizations to cross-subsidize other programs and operations that may not always be adequately funded given [the] demand.”

“Many other sources of social service program funding are fixed or capped, regardless of the number of clients served.  But because Medicaid reimbursements follow the client, an agency that serves more eligible clients will receive more money without having to bill clients.  Finally, expansion of Medicaid coverage and enrollments in the past few decades has increased the pool of eligible clients for nonprofits.”

As we have seen in the review of some of the agencies under the ADAMHS Board, being a “nonprofit” can be very profitable without the executives assuming any risk of personal investment.

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s