Medicaid is Not Really in Jeopardy
We are being exposed to a barrage of fear tactics claiming that Medicaid is being cut for those who need it. Democrat politicians are scaring grandmothers who they claim will die, children who they claim will be denied needed treatment, and pregnant women who will be left to suffer.
The real truth is that there is a high level of abuse and fraud in Medicaid and it needs to be stopped. Medicaid is subject to high levels of fraud and abuse and adds significantly to our national debt. In California we are even giving healthcare to illegal aliens from Medicaid funds possibly limiting their availability to eligible California citizens.
The New York Governor, Hochul, screamed last week that Republicans are ripping healthcare away from up to 1.8 million in her state claiming it is to give away to wealthy billionaires. Senator Murray (D, Washington) warned that moms and babies will lose healthcare coverage, and Representative Ramirez (D, Illinois) shrieked “People will die”
As for Hochul’s bombast that changes to Medicaid will bankroll billionaires, the truth is that current federal spending is “unsustainable,” according to the nonpartisan General Accounting Office. Without changes, everyone in the U.S. will be clobbered with higher inflation and interest rates.
Such theatrics deny the truth. Americans on Medicaid who need health care will not lose it. The Medicaid changes are designed to help all Americans, just not the wealthy. Republicans are trying to control federal spending on Medicaid and stabilize the out-of-control national debt.
The economic impact of Congress not containing Medicaid spending is what’s truly scary.
If the demagoguery succeeds and the Republican majority doesn’t stand firm on a budget bill that curbs spending, everyone will suffer and it will not be restricted to Medicaid. Inflation will rise. Interest rates, while being held steady by the Federal Reserve, will likely go up making the cost of buying a home, purchasing a car or paying for credit cards more challenging to the average American. President Donald Trump’s tax cuts probably would not be renewed, and some companies, suddenly facing unfavorable tax rates, would leave the U.S. for lower-tax locations, possibly taking your job with them.
Since 1965, Medicaid has provided a safety net for those in medical need, and no one is proposing “gutting” it. The escalation began when Barack Obama was President and Congress expanded Medicaid to cover healthy adults, whether they were willing to work or not.
Rep. Nancy Pelosi boasted that everyone should have the freedom to pursue “your own happiness”, for example, being a writer, or “whatever you want to do,” without having to hold down a job and pay for health insurance. This standard made working people patsies supporting able-bodied adults who could work. We now have 50 million adults who could work, but they do not partly because of an overly-generous government.
Congressional Republicans are calling for a “work requirement” for healthy people who don’t have to care for a child or elderly dependent. With consideration for those who have legitimate responsibilities, anyone employed for 80 hours a month, or attending school, a training program, or a drug recovery program, and is low-income, will still be eligible for free care. Just not moochers.
House Speaker Mike Johnson tweeted last week, “Medicaid is for single mothers with small children who are just trying to make it. It’s not for 29-year-old males sitting on their couch playing video games.”
The Committee for a Responsible Federal Budget estimates that if the work requirement is imposed, it would save $140 billion over the next decade.
Another concern is the method of determining eligibility. To solve this problem that results in abuse of our healthcare system, Republicans are proposing $100 billion in savings by allowing states to check eligibility for Medicaid more than once a year. This will overturn the 2024 Biden administration rule that barred states from checking eligibility more frequently, allowing some people to stay on Medicaid after their income was too high or they were no longer disabled or caring for a dependent.
Congress isn’t taking Medicaid away from the needy, but Republicans are looking to slow spending growth. This action will allow Congress to renew Trump’s 2017 tax cuts, which are about to expire.
Before 2017, the U.S. was losing 10 multinational corporate headquarters a year to countries with lower corporate taxes. After Trump’s 2017 cuts, the exodus stopped. The new proposed tax rate of 15% is essential to attract business, save jobs and create new ones.
Democrats don’t seem to “get it”. They seem oblivious to the damage done by uncontrolled spending and high taxes — a major reason their states are so dependent on Federal Government handouts.
When you hear the demagogues oppose Medicaid “cuts,” remember that not making these changes is what is dangerous to you — your job security and your ability to afford necessities and even to buy a home. Don’t fall for the phony sob stories.