http://www.usnewswire.com/topnews/Current_Releases/0914-121.htm begin -- Medicaid System at Risk of Failing in Over Half of States U.S. Newswire 14 Sep 13:57 Medicaid System at Risk of Failing in Over Half of States To: National Desk Contact: Stephanie Meyer of the Center for Y2K and Society, 202-775-3157; E-mail: smeyer@y2kcenter.org; Web site: http://www.y2kcenter.org WASHINGTON, Sept. 14 /U.S. Newswire/ -- The following was released today by the Center for Y2K and Society: The Medicaid systems in 33 states and the District of Columbia are presently at considerable risk of failure due to Y2K problems, according to newly released information by the Health Care Financing Administration (HCFA). Medicaid, a joint federal-state government program, pays for the healthcare of over 34 million Americans at a cost of $160 billion annually. Medicaid pays for one out of every three births in the United States, and almost half of all nursing home revenue comes from Medicaid. Essential healthcare is at risk. According to HCFA, Medicaid is at high risk of failure in nine states: Alabama, Massachusetts, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Tennessee, and Vermont. More than two dozen states are at medium risk of failure, including Texas, Connecticut, New York, Arkansas, Missouri and the District of Columbia. What will happen if state Medicaid systems fail to work come January 2000? Most impacts will appear not on Jan. 1 or 2 but over the first several months of the year: -- Some patients will be refused healthcare. -- Urban public hospitals will be flooded with Medicaid patients who normally go to other healthcare institutions. -- Medicaid payments will slow down and cause the failure of cash poor clinics and nursing homes. -- The basic care of low-income nursing home residents will suffer as costs are cut. -- Fraud will increase dramatically as unscrupulous providers claim services were provided in 'good faith' to ineligible or nonexistent patients. What can be done now, with just over 100 days left in 1999? Our prescription is centered around state-level and community-level contingency planning and applies regardless of Y2K readiness. All states must: -- Freeze eligibility requirements from now through mid-2000. -- Issue paper eligibility IDs before the end of the year. -- Hire and train additional customer service representatives now. -- Move Medicaid funds to providers in the first quarter of 2000. "The healthcare of 34 million Americans is at risk," said Norman Dean, executive director of the Center for Y2K and Society. "Government must take steps now to ensure Medicaid funds are paid in early 2000." For months, the information on state Medicaid readiness had been withheld, prompting the Center for Y2K and Society to file a Freedom of Information Act request. The state readiness information is now available on the HCFA Web site at http://www.hcfa.org. The Center for Y2K and Society is an activity of the Tides Center. For more information on healthcare and Y2K, contact Margaret Anderson at 202-775-3267. --- Have You Heard? -- According to the latest statistics available from HCFA, in the nine states where Medicaid is at high risk of failure, the program provides health benefits to over 6 million people -- nearly half of them children. -- Starting next week, Y2Kountdown will be released on a weekly basis. --- Upcoming Events Sept. 15 -- The Office of Management and Budget is releasing its 10th quarterly report on the Y2K-readiness of the federal government. See http://www.cio.gov for more information. -0- /U.S. Newswire 202-347-2770/ 09/14 13:57 Copyright 1999, U.S. Newswire end --