Tag: medicaid

Tuesday Links

When Too Much Money’s the Problem…

Last Friday’s PBS NewsHour included a debate between NYT columnist David Brooks and WaPo columnist Ruth Marcus on the budget fights on Capitol Hill. Marcus was sitting in for NewsHour regular Mark Shields, whose comments I find thoughtful and worth contemplating. Unfortunately, on Friday Marcus didn’t meet Shield’s standard.

In discussing House Budget Committee chair Paul Ryan’s proposal that Medicaid be converted to a block grant program with the states taking a broader administrative role, Marcus offers:

RUTH MARCUS: The cuts in here are so dramatic. They are so painful. And they — and many of them are focused — I know this is not his intention, but he turns, for example, Medicaid, which is the health-care program for poor people, into a block grant. You give it to states.

But then it just doesn’t grow enough to deal with the increase in health-care costs. Well, what happens to these people?

Is she serious!?

Marcus seems not to understand that government subsidies to health care consumption, in the form of such programs as Medicare and Medicaid as well as employer tax exclusions for health insurance benefits, contribute to the rapid growth in health care costs. That is, by flooding the health care market with government money, the market ends up with many dollars chasing few worthwhile health care products, which results in rising health care prices. Moreover, the subsidies siphon away health care resources from the private-payer health care market, causing cost in that sector to increase rapidly as well.

Subsidies aren’t the only government policies contributing to rising health care costs. Government restrictions on the supply of health care services also play a role. Among those supply restrictions are the ban on drug importation, a very costly and difficult new-drug testing regime, and unnecessarily restrictive licensing of health care professionals.

The rapid rise in health care costs is primarily the consequence of government policies. For Marcus to say that we should maintain the current subsidy system for health care because, without it, Medicaid patients won’t be able to keep up with health care cost increases is … well … not very good commentary.

Tuesday Links

  • Republicans have a big opportunity to undo Obamacare and reform Medicaid and Medicare all at once.
  • It’s a good thing, too, because we’re facing a big debt crisis and if we don’t change course, federal spending will crest 42% of GDP by 2050.
  • There’s also a big elephant in the room in an excessively complicated tax code.
  • One has to wonder if the Republicans intend to put the big sacred cow of defense spending on the table.
  • Unrelated to the budget, education choice proponents scored a big victory in the U.S. Supreme Court yesterday in ACSTO v. Winn, a decision that upheld education tax credits:

Monday Links

  • A year later, Obamacare makes Pennsylvanians say “no thank you.”
  • In a peculiar set of responses to inquiries about Libya, the Obama administration makes “kinetic military action” against the English language.
  • Full or substantial government health insurance makes for an inefficient and expensive health care system.
  • Emotionalism as democratic waves spread across the Middle East makes incoherent foreign policy.
  • As long as big ticket items continue to make the cut, our fiscal house will remain in disarray.
  • If you didn’t get a chance to celebrate Earth Hour Cato-style over the weekend, check out this clip of senior fellow Jerry Taylor making the case against “green” subsidies:


Thursday Links

  • There is a growing gap between Washington policymakers, and the taxpayers and troops who fund and carry out those policies.
  • Why do budget and deficit hawks keep sidestepping growing entitlements?
  • Don’t forget to join us on Monday, March 28 at 1pm ET for a live video chat with Julian Sanchez on the growing surveillance state.
  • The individual mandate in Obamacare is another example of the growing congressional power under the Commerce Clause:

At First Anniversary, ObamaCare on the Run

One year ago today, President Barack Obama signed ObamaCare into law. I recap ObamaCare’s first year in my latest Kaiser Health News column. Here’s some additional news surrounding the law’s anniversary.

Politico reports that supporters won’t have the vast war chest to defend the law that they once said they would:

Democrats are under siege as they mark the first anniversary of health care reform Wednesday — and they won’t get much help from the star-studded, $125 million support group they were once promised…[N]ine months later, the Health Information Campaign has all but disappeared. Its website hasn’t been updated since the end of last year. Its executive director and communications director are gone. There’s no sign that it has any money. And neither [former senator Tom] Daschle nor [former White House Communications Director Anita] Dunn will return calls asking about it.

Politico also reports on what everyone knows, but few reporters seem willing to say.  ObamaCare is unpopular, and growing more so:

Although Democrats insisted that the [law] would become more popular once the congressional debate ended and the benefits started to kick in, the reverse has actually happened. According to a Kaiser Health Tracking poll released Friday, 46 percent of the public opposes the law, up from 40 percent a year ago. Only 42 percent support the law, down from 46 percent a year ago.

Finally, Politico (again) reports that yet another governor – Louisiana’s Bobby Jindal (R) – has refused to implement ObamaCare:

The Louisiana governor’s office gave PULSE the first definitive answer on whether it would run its own health exchange, and it took them only two letters: no. “Obamacare is a terrible policy that needs to be repealed and replaced,” Gov. Bobby Jindal’s press secretary Kyle Plotkin tells PULSE. “It creates enormous new costs and future unfunded liabilities for states financing their Medicaid programs.” That puts him in a similar camp with Florida Gov. Rick Scott, who recently told us that Florida is “not doing anything with regards to the exchange, I don’t believe in the exchange. It doesn’t do anything to improve access to care. It does nothing to drive down health care costs.”

It’s worth emphasizing that Scott and Jindal probably know more about health care than the other 48 governors.

This Week in Government Failure

Over at Downsizing the Federal Government, we focused on the following issues this week:

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