“That sigh of relief you heard Monday was from hospital administrators in nearly two dozen states, including Florida and Texas.”

This is how the Kaiser Health News described the reaction to the Obama administration announcement that the anticipated reduction in special Medicaid payments to hospitals for care of the uninsured will not penalize states that have not expanded their Medicaid eligibility guidelines.

10 Questions with Oregon Gov. John Kitzhaber: Coordinating Care to Cut Medicaid Costs

Oregon Gov. John Kitzhaber, a physician, says his state’s new approach to Medicaid under a federal waiver has fundamentally changed the way health care is organized and delivered. It established coordinated care organizations, which are moving away from a fee-for-service model.

$2 Million Ad Campaign Opens in Colorado and Feds Release 3-page Application

Colorado is the first state to launch a major ad campaign to drive citizens to the state health insurance exchange to purchase insurance. Under the Affordable Care Act, the exchanges must be open for enrollment on October 1, 2013, and for coverage beginning January 1, 2014. This TV ad is airing in Colorado.

Stateline Midwest ~ May 2013

• State-by-state trends in Medicaid enrollment over the last decade »

Since its inception in 1965, Medicaid has been a critical part of our nation’s safety net. And as both enrollment and spending have been steadily increasing — and a new federal health law is poised to take full effect — the strength of that net is being tested.

Technology Offers Savings, Fair and Timely Justice
Article by National Association of Medicaid Directors Executive Director Matt Salo

The question of how to produce savings in Medicaid is almost as old as the program itself. While Medicaid traditionally has sought cost savings via cutting eligibility, benefits or reimbursement rates, state Medicaid directors are recognizing that we cannot continue to cut our way out of this problem. In fact, there is growing awareness that the solutions lie along a different path, that of a broader delivery system and payment reforms.

U.S. health care costs are likely to be around $2.8 trillion in 2013. In 2010, U.S. spending on health was 17.6 percent of gross domestic product; for comparison, the Netherlands spent 12 percent of GDP, the next highest spender of developed nations. The Centers for Medicare and Medicaid Services expects health spending to hit $4.6 trillion by 2020—19.8 percent of GDP. While spending growth has slowed in recent years—it has been near 4 percent for about four years and has reached a 14-year low—many believe the spending levels are unsustainable.

Our American health care system and the myriad proposals floating around to increase efficiency, decrease costs and improve outcomes are complicated enough without all the alphabet soup that is too frequently used. ACA, PPACA, MCO, ARNP, ACO, PCP, PMPM …. you have probably seen them all, and many more, if you do much reading in the health policy field.

Yesterday the NY Times published an article about an effort by a hospital outside of Chicago and its associated physicians to reduce hospitalizations, and consequently reduce costs. They have been successful! The NY Times explains how without any policy wonk language.

In a second vote in as many days, the Arkansas House today passed an appropriations bill that provides funding for expanding Medicaid, according to the Arkansas Times. Arkansas is closely watched as the federal government has given approval to the state to expand Medicaid by using funds to purchase private health insurance policies for newly eligible individuals through the health insurance exchange.