ObamaCare’s Medicaid Expansion Racket Explained

Presto! Out of Thin Air!

Presto! Out of Thin Air!

I hadn’t known Medicaid was a racket. Well, that’s not quite true; most government services resemble rackets to some degree when you take fraud and waste into account but with Medicaid, some states are fraudsters too, apparently. New York is being investigated from this angle according to reports; States Suck Medicaid will explain.

Put simply, the Feds match every Medicaid dollar a state spends, so states wishing Federal dollars have a motive to puff up their expenditures so as to pull in more Federal dollars. In its facilities for the mentally disabled, New York was spending $5,119 per patient each day, or $1.9 million per year per patient, That sucked a ton of Federal matching bucks into the state; it also got attention. Another New York Medicaid benefit is “personal care for the homebound” which can include grocery shopping and housekeeping and can cost up to $150,000 a year. If you know whatever you spend will double at someone else’s expense, you’re not exactly encouraged to save, right? Since all that moola is coming to you?

If that’s worthy of Federal investigation, imagine what Obamacare will accomplish; the Feds will pay 100% of the mandated Medicaid expansion segment until 2018 and 90% thereafter. That sucks a long ton of Fed spending into the state, right? Even avowed anti-Obamacare, conservative governors like Jan Brewer of AZ and John Kasich of OH have signed on to the Medicaid expansion, though others are stalling. What politician can resist easy money?

Well, some have resisted it so far, anyway. In FL, Governor Rick Scott may be salivating at the expected 42% expansion of Medicaid but he hasn’t yet signed on. Some two dozen undecideds seem poised at the moment. See, there’s a prospect of a very costly worm in that shiny green Federal apple.

In Washington, we realize that budget-cutting spending plans are all make-believe, not serious. But so far, every single one of them includes cutting Federal Medicaid contributions to the states. So some of the more realistic governors figure the meaty bone being waved in front of their slavering jaws is an illusion; others haven’t been able to resist. If the cuts materialize, the states who’ve signed onto the Obamacare Medicaid expansion are going to be holding a very expensive bag with nothing left in it. Oops!

All this goes on while all but the suspicious governors ignore the fact that the Feds are spending over a trillion a year that they don’t have even before the huge Obamacare expansion of Medicaid occurs. Mere details, I guess, to a politician.

It seemed to me that you might enjoy hearing about this since your avowed informers, the media, have made so little noise about it. It IS your money…well, more likely, your grandchildren’s money. Anyway, now you know.

About Jack Curtis

Suspicious of government, doubtful of economics, fond of figure skating (but the off-ice part, not so much) Couple of degrees in government, a few medals in figure skating; just reading and suspicion for economics ...
This entry was posted in Affordable Care Act, Domestic Policy, Fiscal/Financial Responsibility, Healthcare, Overspending, States and tagged , , , , . Bookmark the permalink.

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