Medicaid Numbers Don’t Add Up

FYI | Medicaid Numbers Don’t Add Up

Oct 2, 2009

by John Goodman

This is from a Wall Street Journal editorial:

Currently, the federal government pays about 57 cents out of every dollar the states spend on Medicaid, though the “matching rate” ranges as high as 76% in some states. That would rise to 95% [under the Baucus bill] —but only for five years. After that, who knows? It all depends on which budget Congress ends up ruining. Either the states will be slammed, or Washington will extend these extra payments into perpetuity—despite the fact that CBO expects purely federal spending on Medicaid to consume 5% of GDP by 2035 under current law.