NC Medicaid: Lowest annual spending growth in United States

There was criticism of NC’s innovative Community Care of NC program and the NC Medicaid program as a whole in yesterday’s audit of Medicaid being trumpeted by the McCrory Administration.  Let’s take a broader look at the facts.  For the period 2007-10 (the latest year annual stats are available) North Carolina’s annual spending growth in Medicaid was 3.5% – almost half the national average and the lowest rate of spending growth of any Medicaid program in the United States.  A “broken” program?  No.


  1. Doug

    February 1, 2013 at 3:33 pm

    Don’t forget to point out that the spending increases are still quite a bit higher than the average 2.23% inflation rate the general economy experienced in that time frame. That is more than 50% more than the activity in the economy as a whole. There is defenitely something broken there if it happens on a continual basis.

  2. david esmay

    February 1, 2013 at 4:56 pm

    Two completely different and unrelated equations, growth in Medicaid expenditures and inflation. Thanks for pointing that out. What is broken, is the ability of right wing nuts to apply logic to any subject.

  3. Doug

    February 2, 2013 at 8:19 am

    If you are not aware of the correlation between spending and the overall cost growth in the economy you should stay out of the comments. You are only putting up a trolling comment otherwise. And as far as logic? The lack of logic is what has gotten us to the state we are currently in with costs spiraling out of control, billions in debt, and bloated programs that are going to bankrupt us (like Medicaid). It is great to do the right thing within limits….and we have not had sane limits since the 1960’s great society became a time bomb.

  4. Doug

    February 2, 2013 at 8:34 am

    Oh and david, don’t forget to go to “NCIOM: Medicaid Expansion Saves NC $159 million over next two years; saves $65 million over next 10” to troll that comment too. You can take your schitzophrenia out on me and this “Alex” you hear in your head.

  5. david esmay

    February 2, 2013 at 11:22 am

    Doug, why don’t you look at the cause of the increase instead of the program itself. The increase is spending is caused by the astronomical increase in the cost of health, which has caused the increase in spending. Programs such as Medicare and Medicaid don’t determine what health care providers charge for services. The cost of healthcare in the U.S. is two to four times higher than any other modern industrialized country in the world. At this particular time in our history the largest demographic of the population, baby boomers, are aging and entering the system. Defense takes up higher percentage of the GDP and government spending than entitlement programs.

  6. Doug

    February 2, 2013 at 4:08 pm

    And when did the massive increases in costs start? When the government became involved in paying for healthcare. You see, when the government gets involved you get a lower quality product, less of it, and at a higher cost.

  7. david esmay

    February 3, 2013 at 7:40 am

    Wrong, when private insurers got greedy. Admin. cost of medicare and medicaid is about 6%, private insurers, 30-40%. The highest paid CEO’s aren’t bankers, but heads of insurance companies like United Health Care, whose CEO makes 140 million a year, 1,700 times the salary of the average worker at United. Government programs cost less and are more efficient. What we should be focused on is unemployment, not debt, not deficits.

  8. Jeff S

    February 3, 2013 at 1:20 pm

    So…. healthcare costs expand faster than inflation. The conclusion is that medicaid is broken?

    Let’s be honestly here. You started with that so-called conclusion. The right is sadly mistaken if they think that removing government money from the healthcare system is going to put a couple cents back in their pocket. I suppose it doesn’t matter though, when your primary goal is to deny a benefit to someone else.

    Until the govt is willing to take over the entire system, Billy Bob and Sally Sue (and their suburbanite cousins) will always be angry that they are missing out on something given to “them”.

  9. Doug

    February 3, 2013 at 8:12 pm

    you need to learn to use this thing called Google before you put the wrong facts out there. The first two search results show that no CEO’s were making $140 million. And the Forbes article shows insurance as on the lower side of CEO pay.


    The free market clearly works. The lack of any real competition is what keeps medical prices high. Choose any product out on the free market…..how about that big screen TV as an example. 5-10 years ago you would be paying >$1000 for a sizeable HDTV. Now you can go to any Walmart and get it for less than $250. Now…get the government involved, we would be paying $1000 for a six inch black and white set like we had in the 60’s. Be honest here, do you really want government involved in planning your goods and services, or the greaty minds out there that want to profit from innovation. Think of how it worked in the good old USSR….lines for bread and toilet paper. Medicare type health care was tried there too, we see what that got them.

  10. Adam Searing

    February 4, 2013 at 9:26 am

    Let me just repeat the blog post – NC Medicaid had the lowest spending growth in the entire United States. That is just a fact. If we could replicate what NC Medicaid is doing across the country, many states would realize huge budget surpluses even while they are delivering better care. That’s got to be something everyone can agree on.

  11. david esmay

    February 4, 2013 at 5:25 pm

    Doug, Forbes lists Stephen Hemsley of United Health Group, parent co. of United Healthcare as the highest paid CEO in the U.S.. His total compensation for 2012 was 135 million. Try using that thing called Google of which you speak a little better.http://www.forbes.com/lists/2011/12/ceo-compensation-11_land.html

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