In case you missed it, be sure to check out Ned Barnett’s column from Sunday’s edition of Raleigh’s News & Observer in which he explains why the myth of runaway Medicaid spending is just that — a myth.
“Refusing to expand Medicaid may look reflexively anti-Obama and hardhearted, but Republicans say it’s a matter of fiscal responsibility. They say that Medicaid’s annual costs are prone to unpredictable surges and that its overall rate of increase means it will soon crowd out the state’s ability to meet its other obligations.
But the Medicaid monster is a myth. A new analysis by the nonprofit Medicaid management organization Community Care of North Carolina found the health care program to be a steady expense. It’s expensive, yes, but it does a lot to improve the health of a vulnerable population and may well head off more expensive medical costs that would inflate premiums for everyone.
John Alexander, Community Care’s vice president for Medicaid financial performance and analysis, sat in a conference room last week and presented the reality behind the illusion. ‘We found that spending on Medicaid isn’t broken, it isn’t unpredictable, it isn’t out of control,’ he said.
Indeed, he said, year-over-year spending on Medicaid is consistent, its administrative costs are relatively low and the cost per patient is going down, falling 9 percent in the last four years.”
The essay goes on to explain how supposed spikes in Medicaid spending in recent years are really just a result of the end of federal stimulus spending in response to the Great Recession: