Democrats, the only ones who voted for the so-called Affordable Care Act, did so knowing that tens of millions of Americans would lose their insurance and/or their doctors. They also knew that Americans would be paying higher premiums, higher deductibles and higher co-pays. Their hope was to cause so many problems in the healthcare system (decreasing access & increasing cost) that Americans would beg for Socialized Medicine completely controlled by the federal government.
WASTING MEDICAID MONEY
Perhaps you heard some months ago how Oregon had massive Medicaid funds, far in excess of those needed to provide medical care to the state’s Medicaid population. Instead of doing the ethical thing and returning the money that they did not need, they wasted federal tax money on cooking classes and dancing lessons. That sounds like small ball compared to how Oregon wasted federal tax money under Obamacare. They started receiving massive, unneeded sums under the Affordable Care Act (ACA), which President Obama signed on March 23, 2010. When I was practicing law in Oregon, I learned many ways Oregon threw Americans’ hard-earned tax dollars down the toilet. Following is just one example of what I was hearing from clients:
In 2013 a middle-aged couple came to see me. When we were discussing their legal issues I learned that they had been taking care of the wife’s mother in their home for close to 20 years. Her mother was a disabled recipient of Medicaid. During all those years Medicaid had paid this couple first $800, then $1000 per month. One day a Medicaid check arrived for more than $6000. They assumed there had been an error, so they phoned their Medicaid caseworker. She told them that, under the new Affordable Care Act, this was the new amount they would be receiving EACH month. They were still concerned about cashing the check, so they asked to be transferred to the supervisor. He told them that Medicaid was “flush with cash due to the ACA and Oregon HAD TO spend it.” He told them, if they did not accept the higher monthly payments, their mother would be removed from their home and put in a government facility.
HOW THE MEDICAID SCAM WORKS
Nearly every state games the Medicaid system to increase its share of federal subsidies. This has been going on for years and the federal deep state has long been aware of it; but, did nothing to stop it until the Trump Administration.
One more scam: many states reclassify some of their Medicaid population claiming they are sicker than they really are, which draws larger federal reimbursements. In addition, 49 states, including Oregon, game the federal matching funds grant. Here’s The New York Times describing how the scam works:
“New Hampshire taxed its hospitals and returned dollars to them as higher payments for Medicaid patients’ care. On paper, the tax inflated the state’s Medicaid spending, allowing it to collect more matching funds from the federal government.”
Republicans have been trying to crack down on these scams, but the states and hospitals always push back, claiming what they’re doing isn’t illegal and they need the additional money. The One Big Beautiful Bill imposes more restrictions to try and minimize these unethical practices, but it also provides a $50 billion hospital stabilization fund over five years to offset hospital losses.
If implemented as envisioned, the OBBB will reduce the Medicaid population (including illegal aliens), slow the explosive growth rate in Medicaid spending, and return it to its original purpose: Providing health coverage to the poor and disabled. That’s how to save Medicaid for the future.
Monopoly Round-Up: Obamacare Is Cooked. What’s Next?
What Are Democrats Whining About? Obamacare Was Designed To Fail
I first wrote the following article three years ago. I now offer it to my readers with updated revisions. Obamacare was enacted (2010) just before the oldest Baby Boomers would qualify for Medicare benefits (2011), without one Republican vote. The short term goal was to slice payments in half for Medicare doctors, discouraging younger doctors from becom…
The author, Diane L. Gruber, is a First Amendment advocate who writes for Substack. She calls her Substack newsletter America First Re-Ignited. Follow me on X @DianeLGruber.
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