Industry Articles
Industry Articles Home > Reverse Mortgage News
|
Retirees may need cash from reverse mortgages after Medicaid cuts 2010-01-20 Retirees may have a harder time paying their medical bills after state Medicaid cuts go into effect, but reverse mortgages are an option for older people who need cash. Multiple states are considering cutting back on Medicaid in the coming years, Kaiser Health News reported on Wednesday, due in large part to budget shortfalls. Yet state Medicaid cutbacks may affect the elderly disproportionately, as Medicaid has become a lifeline for many older people. In Vermont, for example, the state government is facing a $153 million shortfall. The governor, Jim Douglas, proposed cutting expenditures by $53 million; many cuts would come to state programs for the poor and elderly. Caps would likely be imposed on the treatment that Medicaid beneficiaries could receive, the Burlington Free Press reported. In New York, Governor David Paterson proposed shaving $1 billion from Medicaid expenditures. And in Kentucky - where one in five people are enrolled in Medicaid - the program will see $108 million in spending reductions in the next few years, the Lexington Herald-Leader reports. State governments are struggling to balance their budgets, and Medicaid is a cost-cutting target. But seniors who rely on it may need to raise extra cash if their states cut back significantly on the care that Medicaid can provide them, and many are likely to turn to reverse mortgages.  |
