The Empty Outrage Over Medicaid Cuts

Democrats are criticizing the BBB for Medicaid reforms, despite its overall fiscal irresponsibility. The bill reduces the growth rate of Medicaid spending, not actually cutting it. Medicaid's structure incentivizes state spending due to the federal government matching funds. States now face choices between raising taxes or reducing coverage as the federal match rate decreases. Medicaid is a costly program, consuming a large portion of state budgets already. Voters may reject higher taxes for Medicaid, valuing their income more. A significant portion of Medicaid spending benefits medical providers directly. The author suggests that provider interests may be influencing the Democratic outcry. Reducing Medicaid's growth is seen as a move towards fiscal responsibility. The author believes the bill prompts states to become more fiscally responsible.