The Arkansas Democrat Gazette has had several articles of late concerning Medicaid funding for the uninsured. The commentary that follows discusses some of the issues that have become very common over the years pertaining to funding and the political issues involved in finding money for the programs.

State after state is faced with the question of what to do with the problem of Medicaid expansion and Arkansas is no different. The question is what will make it possible to expand the program to cover 250,000 more people without raising costs to the taxpayers. The answer is very simple. There is no possibility for doing so, but the politicians do not believe it.

Arkansas Governor Mike Beebe wants to use federal money to expand the program because that will allow the state to keep the cost reasonable. That is typical liberal thinking when they try to solve a problem. They have actually said that they can save money by spending more to cover the 250,000 uninsured. Maybe they should take that magic act on the road and charge admission to raise funds.

The number of 250,000 for the uninsured is thrown out as if it has been determined by some type of scientific survey which is written in stone. Who counted the people that is said to need the coverage? Would it not be better to devise a program that can actually determine the number of people in need of the medical service? What is the reason that a program cannot be developed to help the people off of government dependence? That would be far better than always looking to the federal government for help, and then be stuck with holding the bag when the federal funds are reduced or disappear altogether. But that involves using common sense and it appears that very few politicians have any sense at all, common or otherwise, especially Democrats when it comes to spending money they don’t have or have taken from the taxpayers through higher taxes. They pretend that federal money is somehow magically created and is there for the taking to fund whatever idea they create.

It all began years ago when the federal government decided to help a few and it would only cost a few dollars. But, politicians being politicians saw how wonderful the program worked for a few with only a few dollars expended, so the few covered became more, and the few dollars grew to immense proportions and now it is proposed that covering the uninsured with federal money will cost virtually nothing and actually will be saving money. The magic saving money act begins in a few days, so stay tuned.

There is a gigantic problem with the idea of using federal funds. The feds will cover 100% of the cost for three years, but then after the three years the funding will be cut back to 90 percent. That means that the state will have to find funds for the 10 percent shortfall. That is right. The state will save money for three years by using federal money to cover the uninsured, but what will be the source for the needed ten percent at the end of the three years and what will happen if it isn’t found.

First, the federal government has no real money and any money Arkansas or any other states receive, only adds to the national deficit and debt. Secondly, when the federal funds are cut, the only place that money will be found is in the already beleaguered taxpayers unless the number of those covered is reduced to compensate for the reduction of the ten percent reduction in funding.

Now the perfect trap can be sprung. The Democrats are not happy with losing both houses of the legislature to the Republicans and are chomping at the bit to derail the Republicans in the next election, and now the perfect trap has been handed to them, courtesy of the Medicaid problem. If the 100% deal is taken by the Republicans, they will need to deal with the ten percent cut in three years. If they raise taxes to cover it, then the Democrats will have a big campaign issue that the Republicans raised taxes. If they do not raise taxes and instead make cuts in the number of people covered, then the Democrats will yell that the Republicans have no heart and are depriving the needy of medical care. The Democrats will promise to fix it and the people will be suckered again by the usual smelly hot air billowing from the donkeys. The Republicans will be caught in a trap they helped create if they take the funding deal. And the Democrats are eagerly waiting to help spring the trap.

© 11-25-2012 DEC

I did this article myself and I approve of it.