Medicaid vs Tax Cuts for the wealthy

What you need to know about our nation's largest insurer, part 1.

There’s about to be a giant battle over Medicaid, one that will shape US healthcare for decades to come. The battle is happening because Trump and his allies need to cut over a trillion dollars from government spending…so they can give a gigantic tax cut to wealthy individuals and big business.

Here’s what you need to know about the nation’s largest insurer.

First, a few facts.

• Half of disabled children rely on Medicaid.

• 1 out of 6 adults are covered by Medicaid.

• 3 out of 5 adults covered by Medicaid are working.

• More than half of Medicaid spend is for the elderly and disabled.

• 2 out of every 5 births are covered by Medicaid.

• Medicaid is really popular regardless of political affiliation.

What is Medicaid?

Enacted sixty years ago, Medicaid was designed to cover babies, children, pregnant women, the poorest working-age adults, kids and adults with disabilities and older people with few financial assets.

Medicaid varies a LOT across states; while it is a partnership between federal and state governments within set parameters states have a lot of latitude to determine the size and scope of their programs. States choose which populations are covered; Once a state choses to cover a population that population is entitled to specific covered services. Funding comes from the state and federal government; federal funding is “open-ended” ensuring payment for the cost of medically necessary care for covered populations..

How much a state contributes depends on its population’s income levels. The wealthiest states (think Connecticut and Massachusetts) pay half the medical cost while the poorest states (think Mississippi) pay just 1/6th of the medical cost. Federal taxpayers also cover least 50 percent of program administration costs.

State governments are required to pay at least 40% of their state’s cost, with the rest paid by local, state, and city governments often funded by taxes on healthcare providers.

What does this mean for you?

A lot of the people you meet, work with, see at social events or your kids’ activities are insured by Medicaid or have family members covered by Medicaid.

For my friends in workers’ comp…annual Medicaid medical spend is 23 times more than work comp medical spend.