Policy brief Essay Example | Topics and Well Written Essays - 1000 words

Policy brief - Essay Example Notably, the affordable care act requires states to establish their independent insurance exchanges. In other words, they want states to default to the federal exchange. Nonetheless, it should be noted that the joint federal state programs were initiated to fund the medical services in the United States. This is a long term project that was initiated to provide care to the moderate income families. Moreover, it is worth noting that Medicaid is among the largest federal funded budgets and it has had a rapidly growing cost, but with unsustainable rates (Rosen, 1988). The huge cost of this program to the federal government’s budget calls substantial overhaul towards reducing the taxpayers from huge funding burden. Nearly all states including Vermont usually receive Medicaid with an open ended funding from the federal government (Kaiser Commission Medicaid, 2012). The expansion of the state budget along with their expanded benefits usually leaves the taxpayers with no option but to pay additional costs. It should be noted that the current funding structure provides a room for overexpansion that in turn provides the states with limited incentive t o control extensive waste and fraud programs. Moreover, program is designed in a top down regulatory structure thereby creating distortions within the health care markets. However, the Medicaid intra governmental grants have proven to be effective and efficient for the funding mechanisms within the United States funding systems. Notably, they have created conditions that match the states’ funding considerably. In essence, the program allows the federal government to share specific expenditures that are attached to the program. These programs attached to the Medicaid services are known as the federal medical assistance percentage (FMAP). The FMAP was initiated for the government to have a larger percentage in the Medicaid costs in states. However, the highly targeted states are those with low