There are several problems with Medicaid a Government Run Health Insurance Provider. Thats operated by both the Federal and State Governments. And these problems have become worse when there’s High Unemployment. Not enough people working and paying taxes to support Medicaid and other Public Services. But these problems are centered around, Medicaid being an Unfunded Mandate. Meaning the Feds have forced the States to provide Health Insurance for its Low Income people. But haven’t provided them the funds to pay for it. Or haven’t lived up to paying their share of the Medicaid Costs. That they wrote in their own law in 1965. So now the States are left holding the bag. And being forced to finance something they don’t have the funds for. Either in good economic time or now.
Another issue with Medicaid has to do with the 2010 Affordable Care Act. Where they are now forcing the States to expand its Medicaid Coverage. But again not providing them with the resources to pay for it. Which ends up going on top of the States already very tight budgets. Where they are already dealing with Budget Deficits and Debt. And now have to find the resources to pay for their current. Medicaid Costs but also the additional Healthcare Costs from the ACA. Which is one of a few things I would like to fix with the AFA. Get the Unfunded Mandate out of the AFA but also get the Unfunded Mandate out of Medicaid all together. So the Feds and States who are already dealing with massive Debts and Deficits. Would no longer have to deal with funding Medicaid.
What I would like to do with Medicaid, is to get it off the Federal and State Payrolls. All together by turning it over to the States, for each State to have their own Medicaid System. That would have to meet basic Federal Standards. But then convert Medicaid into a Semi Private Non Profit Self Financed Health Insurance Provider. For Low Income people financed by its consumers and employers. Expand the Earned Income Tax Credit to include Healthcare Costs. Which would be a lot more Cost Effective then trying to run a Government Agency. For Unemployed Workers, they would get the same Healthcare Credit. But their Public Assistance Checks, would also be expanded. To cover their Healthcare Costs.
The Feds and States are drowning in debt thanks to the “Great Recession”. Where we’ve lost so much Economic Growth and jobs. And just no longer have the resources to finance things we paid for in the past. Which is why we need to find ways to make Public Services more effective with lower costs.