H.3067 would extend the protection of the State Insurance Reserve Fund to any physician or dentist performing medical services in a clinic (or similar facility) solely for reimbursement through Medicaid. Extending state liability coverage will act as an incentive for more physicians or dentists to perform services for Medicaid reimbursement. This bill may also have the effect of attracting less qualified physicians/dentists who have a more difficult time getting insured privately, to provide services in exchange for Medicaid payments. If the second effect comes to pass it could prove harmful to individuals who are enrolled in Medicaid.
If legislator wish to make more medical services available for less money to the state’s poorer citizens they should look to repeal harmful healthcare regulations such as mandated insurance benefits and certificate of need laws, both of which drive up costs. Incentivizing more physicians to participate in Medicaid is doubling down on a broken program.