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Chart: NC Medicaid has drastically reduced cost growth since 1990

Over the weekend, Governor Pat McCrory continued on his theme of “Medicaid is broken and costs are out of control” in a number of interviews. This reflects the talking points in this week’s NC Senate budget release that blame Medicaid for every budget woe in the state. It’s enormously disappointing that McCrory is not being challenged in these interviews with some basic facts about NC Medicaid that show far from being broken, it is actually a model program in reducing costs. In fact, why not ask him about this one easy chart? Over the last twenty years North Carolina has gone from an annual growth rate in Medicaid costs of 14% to today’s 3.5% growth rate (the lowest in the nation). North Carolina leads the nation in reducing Medicaid growth responsibly.

nc medicaid annual cost growth

5 Comments


  1. Doug

    May 22, 2013 at 4:20 pm

    Well, considering the fact that Medicaid makes up most of the increase in the budget for the next budget cycle then this program should be coming into good shape under the current control. Heck, they are getting $370 million more in funding at the expense of what you leftists call true “investments” in the future of NC. Guess the GPO gave you guys your wish to get more social spending in the current budget.

    http://www.journalnow.com/news/state_region/article_fcc4cdf8-c1c7-11e2-9d9c-0019bb30f31a.html

  2. Doug

    May 22, 2013 at 4:23 pm

    Plus we have a very high benefit plan,
    http://www.lewin.com/publications/publication/283/

    But not all is great in Medicaidland, the costs for administrative duties are way out of line. Which is the real shame in that it siphons the funds from those who need the high dollar services Medicaid doles out.

    http://www.ncauditor.net/EPSWeb/Reports/Performance/PER-2013-7291.pdf

  3. Adam Searing

    May 22, 2013 at 4:40 pm

    Doug – I know it’s hard to argue with a chart that shows such a good record of lower cost growth, but you need to try a little harder. Of course health costs are going up and we need to get a better handle on them, but the fact is, NC is a national leader in controlling Medicaid growth. If the state legislature consistently doesn’t want to adequately fund health care for kids, elders and pregnant women then they just need to say so.

  4. Doug

    May 23, 2013 at 4:48 pm

    It is bizarre however that they are getting a signficant bump in spending…basically all the increase is going to one of your chosen issues. But you are still arguing against the people giving the handout.

    My view is that with such “great” cost control,
    1. They do not need the increase if they are doing their job
    2. We have a high benefit plan, so there are certainly a myriad of controls to put in place as the governor is trying to pursue.
    3. A target is to be the bloated administrative bureaucracy…like pretty much every government program.

    It is great that they have kept the rate of growth down….but there is a lot of room for improvement for sure. Just because one chart shows less growth does not mean all is well. (Plus you have to discount for the agenda of the author, which is likely an advocate for throwing more cash down the Medicaid trashcan)

  5. Dan

    May 23, 2013 at 4:59 pm

    The “Medicaid trashcan,” Doug? You can always tell a Republican by the way they take offense when help is given to the poor and infirm, but see no problem when the rich shelter their funds in offshore accounts. Tell me, do you feel the least bit ashamed when you dress up for church on Sunday?

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