Karen Thurman: “all of us in this Congress should be dedicated to making sure that our scarce resources go to those Americans most in…”

“all of us in this Congress should be dedicated to making sure that our scarce resources go to those Americans most in need of assistance. However, this is not what is happening with Medicaid. That is right, Mr. Speaker. When it comes to the Medicaid Program, many of our States, including my own home State of Florida, are being shortchanged. We are being shortchanged because the Medicaid funding formula, which is 30 years old, is neither fair nor accurate. Under the formula in use since the Medicaid Program was created, a State's need is based solely on per capita income. In 30 years, we have developed much more accurate ways to measure true need and we should use them. The General Accounting Office has recognized the shortcomings of the current formula. In a report the GAO recommended a new formula that takes into account the rate of poverty as well as per capita and corporate income. The GAO has said this will be a much more accurate reflection of a State's ability to finance Medicaid benefits. It would also ensure that assistance went where it is most needed. The Fairness in Medicaid Funding Act of 1995, which I am introducing today puts in place the GAO's recommendation. I would urge my colleagues to join me in correcting the Medicaid funding formula. Mr. Speaker, as is often the case in Washington, the Federal Government does not always target its resources to those individuals who need them the most.”