Simple solutions to complex problems will not solve the state`s budget crisis; they will only make it worse. Take for example the Medicaid problem. Most people see it as doctors and hospitals receiving payments delayed up to and beyond six months for their services.
The bigger problem is that the state just doesn`t have the revenue to cover its expenses and debts. So, argues the administration, expenses must be cut. A courageous full speed ahead and damn the torpedoes attitude has been taken.
The state proposes to eliminate $23 million from the Public Aid budget for drug and alcohol treatment to approx-imately 9,000 Medicaid clients. It fails to take into account the complexities of health care costs for Medicaid clients.
Research during the past decade has demonstrated that drug and alcohol treatment for Medicaid clients reduces-in the same year-their other health care costs by significant margins.
Untreated drug and alcohol abusers have more illnesses, injuries and medical complications than non-abusers. And, they and their families consume more medical services than non-abusers. Now federal law requires that Medicaid clients receive medical treatment for illnesses and injuries similar to what typical health care policies provide. So if more Medicaid clients seek medical attention for illnesses and injuries during 1992, the state will be obliged to pay these charges.
Smart fiscal management would reason that if cutting $23 million from drug and alcohol treatment to Medicaid clients is going to result in an additional $46 million of medical expenses in 1992, then it shouldn`t be cut.
