Monday, June 20, 2011

Mythology and Math

Republic of T goes after those imaginary savings from Medicaid cuts.
The CBO estimates that the Republican budget’s $771 billion in Medicaid cuts over ten years amounts to a 35% cut in Medicaid funding to states. The transformation of Medicaid into a block grant program, ensures that funding will decline because the Republican budget increases these grants annually at the rate of inflation, adjusted for population growth — not the rate of inflation for health care, which is far above the general inflation rate.

In other words, it’s build into the budget that states won’t be able to keep up with the costs of the program under the Republican budget, because the Republican budget doesn’t take the rate of growth in health care costs into consideration. So, states cut back on the very Medicaid services that the elderly and disabled, and their families, rely upon.
That's probably an intended feature, not a bug.

There's more.

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