One of the many arguments against Medicaid expansion in North Carolina is the highly questionable reliance on the federal government funding 90 percent of the costs of expansion indefinitely.
Left-wing supporters of expansion dismiss such concerns as “farfetched” and highly unlikely.
But how wise is it to rely on the federal government for such a significant share of the financial costs of expanding an entitlement program?
Let’s review the numbers:
- the federal government is more than $22 trillion in debt
- annual deficits are exceeding $1 trillion
- So ALL new federal expenditures on NC medicaid expansion will be borrowed funds
- Social security and Medicare unfunded liabilities combine for nearly $50 trillion
Moreover, our nation’s economy is facing a very high risk of recession in the near future. When recession hits, how will the federal government maintain all of its spending commitments?
The federal government just reduced its reimbursement rate for a children’s health insurance program, leaving NC state government to foot an unexpected $140 million more of the tab. When financial crisis hits, is it really that unfathomable that similar cuts would come to Medicaid expansion?
And let’s not forget the numerous cuts to social security benefits the federal government has implemented over the years to desperately attempt to slow the growth of costs of that entitlement program.
Wishing away these fiscal realities is not a valid argument. Pinning our hopes on the financial basket case that is the federal government is very risky business indeed.