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McCrory blaming Medicaid again; running from bad decision to turn down fed $ to expand

This afternoon Governor McCrory announced that because NC Medicaid may spend between $70 million to $130 million more than the unrealistic budgets created for Medicaid by the GOP-led General Assembly last year he is freezing state employee salaries and limiting other purchases.  Sounds like he’s feeling the heat from his disastrous decision to not accept approximately $1.4 billion a year from the federal government to expand our Medicaid program to more poor citizens.  This is just a transparent political ploy to once again bash our great NC Medicaid program and deflect blame from his decision to turn down all that federal money.  Some facts are called for here:

1.  According to the exhaustive, two-year study by the NC Institute of Medicine, if NC took federal $ to expand Medicaid, our state would save $159 million over the next two years.  This would easily cover the budget adjustment he is supposedly concerned about.  And, as Sarah Ovaska points out below, NC has a $100 million surplus right now, so it’s unclear why McCrory is saying we have a $100 million shortfall!

2.  NC deals with these sort of budget adjustments in Medicaid every year.  In a program with about $3 billion in state spending, the so-called shortfall McCrory is declaring a crisis over amounts to 2%-4% of total state spending.  In a multibillion dollar health program that cares for well over one million North Carolinians, of course these sorts of budget adjustments happen every year.  Private insurance companies keep a reserve to deal with exactly these adjustments in their projects as to what they will spend every year.  NC Medicaid adjusts its budget in the same way.

3.  Fact:  NC Medicaid has lowest rate of spending growth of any state in US.  We must be doing something right!

 

7 Comments

  1. Marilyn

    March 8, 2013 at 6:48 pm

    How about forgoing his and the other republicans salaries in office rather than pick on the already picked on state employees that have sacrificed for years without raises.. on their paltry salaries. What is it with these republicans that they blow through surpluses the Democrats save

  2. Charlie Board

    March 9, 2013 at 11:30 am

    Last link appears to be broken…

  3. Doug

    March 10, 2013 at 8:55 am

    You always forget to point out that after we are fully funded for two years, we are then at the mercy of the government dumping ever increasing costs down to the state level. Looking at the short term rather than long term this looks “great.” Once you go out a few years it is clear that this Medicaid thing is something our state is wise to stay away from. No matter how much it would “feel good” to cover these people.

  4. david esmay

    March 10, 2013 at 9:27 am

    Wrong Doug, fully funded for three years and then our obligation is 10%. Great deal. The only reason Republiclowns in office are opposing the ACA on the state level is that they simply want to oppose any program put forth by the President. If they can undermine the program, and fight it’s implementation, then they can wave it around as a failure in the next election, “hey y’all, it didn’t work in our state”. It’s your GOP Ignorant Caucus at work.

  5. Adam Searing

    March 11, 2013 at 10:53 am

    Last link has been fixed. NC Medicaid has the lowest spending growth of any state.

  6. Pat

    March 11, 2013 at 2:01 pm

    Medicaid is necessary, but only for those who are in need (the chronically ill, American born children, and especially the elderly). We already spend too much money in entitlements for the illegals, we pay for the medical, food, housing, and preschool programs. I am unwilling to pay another tax dollar for these people to continue living off of North Carolina, and they do. We pay for baby after baby after baby, then we feed them. The first thing that need to happen is to look at who gets medicaid.

  7. Doug

    March 11, 2013 at 2:13 pm

    david,
    You need to keep reading the media…once again that google thing.

    There is already talk in DC of making Medicaid a state thing with the Feds out of it.