• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Misleading Medicaid Claims From Senate Finance

    The Committee on Finance has issued a press release that claims under Chairman Baucus’ health care plan, now being marked up and amended in full Committee session: “[e]very state would spend less on Medicaid compared to current spending levels over the next three years (2010-2012), equaling a total net decrease in state Medicaid spending of more than $2.6 billion.” The flaw in the official statement is that no one, especially the states, believes current state spending levels reflect reality.

    Current state spending levels are artificially low because of a temporary increase in the federal share of Medicaid. This bump expires in December 2010. Accordingly, the Congressional Budget Office baseline on Medicaid spending shows federal outlays to decline from $260.1 billion to $244.6 billion between Fiscal Years 2010 and 2011 and remaining increasing only slightly to $247 billion in 2012. In order for total Medicaid spending to remain at the same level, when the federal dollars go down, the state dollars must go up. The additional $2.6 billion in state savings attributed to higher prescription drug rebates are not nearly enough to offset the increased state costs that are expected.

    For the Senate Finance Committee statement to accurately reflect what will happen over the next three years, one must assume states will not replace the federal dollars, resulting in a net decline in total Medicaid spending. If that happens, the Obama Administration will preside over the largest decline in Medicaid spending in the history of the program. Fat chance.

    The current Medicaid program is unsustainable and must be reformed. Unfortunately, none of the current Congressional proposals give the states the tools they need to modernize the program. Without necessary reforms, the states will be left with limited choices inside Medicaid—cut eligibility, cut benefits, or cut providers. Even if the Congress requires federal taxpayers to pay for nearly all of the cost of the additional 11-15 million people to be added to Medicaid, extra money for new people does not change the financial crises states face in running the program for their current obligations.

    Posted in Obamacare [slideshow_deploy]

    5 Responses to Misleading Medicaid Claims From Senate Finance

    1. Gilbert William Smit says:

      I have a extremely hard time trying to understand the fairyland data that Congress is trying saddle upon the people of this Great nation. Where are the REAL figures, with sources, which support these dreams? Obama has spoken about problems beautifully, but has NOT given us workable cures. Since I am a retired military man, I have a better situation medically than most civilians, but I do not like the approach being voiced for our future. It is unsettling.

    2. Bill Cords Red Lodg says:

      I believe we should take Robert Gibbs at his word that President Obama is not

      concerned about being a one term president

      if he can achieve the agenda he is pursuing. In my opinion I believe that the

      president is very bright, intelligent,

      politically savvy and gifted orator who

      believes in his agenda. It is also my opinion that he is the front guy for

      others who wield tremendous financial and

      political power and are willing to go the

      distance to achieve their goals whatever

      it takes. e.g. President Obama says his plan does not include several items that

      the majority of the American people are worried about. He doesn't have a plan and

      if a plan based on a combination of the

      several congressional plans is rammed

      through it will not be his plan. Tell

      them what they want to hear. Tell them

      anything that will help pass a health plan and pick up the pieces later. This is

      political sophistry at its worst clear and

      simple. This may be the most disingenuos

      administration in modern times and their

      tactics appear to be according to Saul

      Awinsky. (sp)I appreciate the opportunity

      to express some pent up misgivings and

      outright distrust of this administration.

    3. Pingback: » Financial News Update – 09/23/09 NoisyRoom.net: Where liberty dwells, there is my country…

    4. Bobbie Jay says:

      The more government steps in the deeper it gets.

      Why can't people see these incompetent idiots for what they are? Incompetent idiots who refuse to hold themselves accountable to their ongoing destruction of the peoples' security…if there's any left.

    5. Pingback: Misleading Medicaid Claims From Senate Finance » The Foundry | kozmom news

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.