ObamaCare Clusterfuck: If you're 55+ and forced into Medicaid, capitation could mean you lose your estate even if you don't cost the government a dime in care
From another excellent Paul Craig Roberts article on the abomination of the estate recovery program:
Many states are choosing to move all or portions of their Medicaid populations to managed care plans. Thirty-five are expected to make changes to their managed care programs in 2014, up from 28 in 2013 and 20 in 2012. States jumping on the privatized-Medicaid bandwagon will mean more profit for corporations and less money allocated to patient care.
A Managed Care Plan is a system of health insurance which includes a network of contracted providers that are paid a fixed amount to provide health benefits to a defined population. Needless to say, this model relies on restriction and denial of care putting Medicaid patients at risk.
A Medicaid Managed Care Plan adds more charges subject to estate recovery for those who are tossed into Medicaid. The Medicaid Manual says that when an individual age 55 and older is enrolled either voluntarily or mandatorily in a managed care plan, the state must seek recovery from the individual’s estate for the premium payments. If the state plan recovers for all Medicaid services, the state must recover from the individual’s estate the total capitation rate for the period the beneficiary was enrolled in the managed care plan.
Check your own state to see if this could apply to you, but as the quotation points out, privatization means capitation, and Medicaid is increasingly privatized.
Yves has a longer post on the suck here, but I thought I'd call out this one point.
NOTE Needless to say, this only happens to you if you're poor.