Explaining the misinformation Republicans state about the Senate health care bill, the New York Times correctly explains Medicaid changes this way:
The bill places a limit on the federal government’s share of Medicaid spending for different groups at different times. In 2020, it pegs funding growth to the medical inflation rate for children and adults at 3.7 percent, and at 4.7 percent for disabled adults and older Americans. In 2025, growth for all groups would be tied to the Consumer Price Index.
But Medicaid spending for adults and children under the current law is expected to grow faster, at 4.9 percent per year — a “substantial” difference in funding, the budget office said.
Take a look at the first sentence quoted, “limit on the federal government’s share.” There is nothing to prevent state and local governments from making up any difference, but that would mean less for states to spend on other programs or higher taxes directly on the citizens of each state. And there you have the crux of the matter. Hide the cost of something we want in deficits and debt or tax others to pay for what we see as a necessity, but to a lesser degree if there is a direct cost.
Shouldn’t we be asking why costs are expected to rise at nearly double inflation?