Medicare and Medicaid

Increased Medicare and Medicaid eligibility and higher costs under health care reform are creating big new burdens for already‐strained State and Federal budgets. States have little flexibility to move toward more consumer‐friendly and/or taxpayer supported systems. The large number of waivers granted by HHS Secretary Kathleen Sebelius is prompting new inquiries from Congress. Governors are demanding a significantly larger role in how each State develops under reform. Medicare and Medicaid programs will affect many areas of reform and health plan operations, including cost, coverage, and the development of information and insurance exchanges.