Ding ding ding!
That's another important cogwheel in the reform-machine...the privatization of MediCaid.
They talk about "block grants to the states to administer their version of MediCaid. The ultimate efficiency is to require all state carriers to participate, and provide the same "MediCaid-product".
It's much less expensive for the state to support subsidized premiums (rather than directly paying claims)
States should have a "means tested" method, where the participants are required to pay something. There should be a sliding scale subsidy for various income levels, from almost complete support for the truly needy, to almost zero (full price) for those that may not have an employer plan available.
Additionally, patients would also be required to have a co-pay (just like everyone else) to avoid the main issue in provider abuse....over-utilization.
Of course this coverage, would not be as quite good as that offered out in the free market. Coupled with the many competing plans of affordable premium insurance, it would encourage former medical-welfare recipients to enter the private marketplace, and further enhance the "health" of both the group and the individual markets.
Great stuff Rock. Also, I have heard that those on welfare who can work will be expected to do so as well.