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The federal government paid Indiana $17.9B for Medicaid expenses based on eligibility. The issue arises when the State legislature takes monies from that pot (roughly $700M), moves it to the general fund, and then acts Pikachu face in surprise when there is a deficit. Boils down to poor leadership.
There is a simple fix – stop cutting taxes and generating taxpayer refunds on the backs of the elderly and the medically complex.
So simple no one will talk about it… because they need for it to not be on the table as an option. We are a very pro-life state as long as it doesn’t cost us a cent. Then, the interest goes away.
What about the surplus savings from the previous 5-6 years where the budgeted amount was more than the actual spend?
If we actually ran our government like a business, or any financially responsible household, we would’ve saved some of that excess money, figuring that at some point in the future, there would be years in which expenses outpaced income.
We passed laws to make that situation trigger automatic taxpayer refunds, because it’s fiscally irresponsible for the government to save too much for a rainy day.
But the best part? We have a rainy day fund, a surplus that our legislators love to brag about. But when a rainy day comes and we might need to tap those funds because they made a big forecasting error? We instead choose to slash spending on people with disabilities.
And as mentioned by someone else, that’s on top of all the federal money intended for the care of the elderly that we are instead diverting to hospital CEO salaries and big fancy new hospital buildings while the elderly rot away in abysmal, understaffed nursing homes.
I mean, to me, when I explain it that way, it makes us sound like a cruel bunch of folks. I guess I don’t understand why others aren’t outraged about it.
“Over the past decade, enrollment in Indiana’s Medicaid program has increased about 80%”. Over time Medicaid will include all but the 1%. Shortly, it will be the top spend in the state budget, just like the trend of social programs at the national level. It’s a bit like going to the grocery store and seeing all the healthy people parking in the Handicapped spaces with a disabled tag on their car.
Indiana is not a pro-life state. It’s a pro-birth state. What happens to you and your child after birth is all part of God’s Plan, not a part of the state budget….
I’m generally pretty amused when legislators decide the best way to rein in Medicaid is to cut reimbursement to hospitals, doctors, and other providers, then complain about increased costs in the insured market. Or the lack of providers willing to provide services for medicaid recipients. If you cut my compensation, I’m less likely to do your lower paying work. Or, I charge my other patients more so the average per patient reimbursement rate stays approximately the same. Those other patients probably have private health insurance or VA or Medicare, and so those costs go up. That way I can keep paying my staff and paying for my office facilities.
Just go tell the doctors their incomes are going to be lower…see how that works for you. See if the doctors and other providers stay in Indiana to provide their services.