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RUPRI Rural Health Panel
Medicaid is the nation's largest public insurance program and is a crucial source of health insurance coverage and provider payments for rural people, providers, and communities. The program fills gaps in health insurance coverage for rural people, particularly low-income families and children, and elderly and disabled Medicare beneficiaries. For example, in 2010, over 42% of low-income rural children relied on the Medicaid and the Children's Health Insurance Program (CHIP) as their source of coverage. The Medicaid program is also a critical source of health care financing for the rural health system, including hospitals, doctors, and providers of long-term services and supports, and contributes significantly to local, rural economies by supporting health care and related employment.
Under the Patient Protection and Affordable Care Act of 2010, (ACA) the importance of Medicaid in the rural health system will grow significantly. Expanding Medicaid eligibility is a key element of the ACA's strategy for achieving near-universal coverage, with over half of the expected gains in health insurance coverage coming from the Medicaid expansion. In addition, significant Medicaid financing and delivery system reform initiatives, including the Health Homes, Dual Eligible Coordinated Care, and other demonstrations, could have significant implications for rural providers and the rural health system.
This brief outlines and describes the current Medicaid program and its importance to rural America. It also discusses rural implications of program expansion, including whether and how states choose to implement changes.
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