Get Rid Of Medicaid? Some States Are Considering It

by Stuart Shapiro

Medicaid works by splitting costs between the states and the federal governments for the medical care of our neediest citizens.  States agree to cover certain groups of individuals and in return the federal government provides between 50 and 80% of the costs.  All states participate, but for the first time in the history of the program, some are considering dropping out.

Elected and appointed officials in nearly a half-dozen states, including Washington, Texas and South Carolina, have publicly thrown out the idea. Wyoming and Nevada this year produced detailed studies of what would happen should they withdraw from the program.

This is the logical outgrowth of the Grover Norquist strategy of creating enough of a fiscal emergency that government has no choice but to cut back popular programs.  The article goes on to note that it is unlikely that any of the states will follow through on the threat to end Medicaid, but the fact that it is even being considered is testament to the thirty year campaign against government.  It is also another reason (besides damaging Obama) that Republicans do not want to see a recovery that would increase tax revenues and decrease the rationale for cutting aid for the less fortunate.

By: Stuart Shapiro

Stuart is a professor and the Director of the Public Policy
program at the Bloustein School of Planning and Public Policy at Rutgers
University. He teaches economics and cost-benefit analysis and studies
regulation in the United States at both the federal and state levels.
Prior to coming to Rutgers, Stuart worked for five years at the Office
of Management and Budget in Washington under Presidents Clinton and
George W. Bush.