More Info on NC GOP Multi-billion Dollar Medicaid Expansion Scheme

A few days ago, WRAL-TV in Raleigh published an article that provided more details on what it describes as the “multi-billion dollar” Medicaid expansion push by Republicans in the North Carolina General Assembly.

North Carolina is liable for 10 percent of all Medicaid costs incurred by citizens who are entitled to this benefit. The article explains:

Hospitals and insurance companies agreed to pick up the 10% of costs that won’t be covered by the federal government — so that in the end there’ll be no cost to the state government.

That sounds very nice. There are three big problems, however, with this reassurance.

First, the hospital systems and insurers will pass along these costs to their other customers.

Second, if this bill is passed into law and enacted, it will be subject to changes in the future. Another session of the General Assembly a few years from now could eliminate this requirement for the insurance companies and/or hospital systems very easily. But the Medicaid expansion entitlement itself will be very difficult– if not impossible– to repeal once it is passed.

Third, the premise that no monies would be required from the state of NC ignores the fact that massive amounts of deficit dollars at the federal level would be funding Medicaid expansion. State Republican lawmakers apparently feel it is acceptable to ignore the impact on our spiraling federal debt.

What the Republicans in Raleigh are doing is extremely foolhardy. The only thing that could explain this determination to proceed is political contributions from hospital systems, insurance companies and/or drug companies.

Remember that, several years ago, the GOP privatized Medicaid. That means many private insurers now profit from administering the program.