July 26, 2018

SICK: ObamaCare Is Robbing Medicaid’s Sickest Patients. “The law’s incentives push states to spend more on new enrollees, and less on the disabled and ill.”

What seems to have happened is this: Recall that for the pre-ObamaCare Medicaid populations—those disabled and sick folks—states must pay up to half the cost. In an era of tightening budgets, they appear to have set capitated payments lower than the actual cost of care. Then when it comes to the able-bodied people covered by the ObamaCare expansion, the feds cover nearly the whole tab, so the states are profligate.

In other words, Medicaid is now encouraging insurers to spend more money caring for people who don’t need it and less for those who do.

So that whole “eliminate waste and fraud” promise turned out to be a fraud.

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