Medicaid is on an unsustainable path:
Medicaid outlays jumped from $409 billion in 2019 to $618 billion in 2024 – an increase of 51% in just five years.
The federal government’s share of Medicaid expenditures has gone from 60% to 75%.
For every $1 of state spending on single moms, disabled, children, and the elderly, Washington contributes $1.33. Meanwhile, it pays $9 for every $1 on largely ablebodied, single (often male) adults under Obamacare. That is seven times more.
The Solution: Equalize the 90% federal match (FMAP) for the able-bodied to the same as the traditional vulnerable population for whom Medicaid was designed. We have to make sure the biggest incentive to Medicaid expansion is gone.
The Need to Significantly Amend the E&C Reconciliation Bill: The current E&C reconciliation bill will cement Obamacare’s massive (7x) subsidizing of the able-bodied over the vulnerable population. It will cause non-expansion states to expand and ultimately make real reform even more unlikely.
The Bottom Line:
As it stands, the reconciliation bill embraces $20 trillion more debt, incentivizes Medicaid expansion, and extends Green New Deal subsidies.
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