As we get closer to the 2024 legislative session, I thought it would be a good time to remind lawmakers that expanding Medicaid in Alabama is still a terrible idea.
Recently, Speaker of the House Nathaniel Ledbetter (R-Rainsville) said they will likely have the “conversation” about Alabama’s healthcare coverage gap. I hope expanding Medicaid was not a part of that conversation.
The “coverage gap” means adults with qualifying children must make no more than 18% above the poverty line to qualify for Medicaid. Many Democrats and Alabama media pundits use this issue to push for expanding Medicaid. So far Republicans in the Legislature haven’t fallen for the trap — and I hope this year isn’t any different.
The main reason GOP lawmakers usually oppose expanding the entitlement program is because it could end up costing the state millions of dollars in the future. While that’s true, that’s also not the biggest problem.
Medicaid expansion became an option for states when the Affordable Care Act — better known as ObamaCare — was passed in 2010. While the bill was supposed to cut healthcare costs in the country, it did nothing to accomplish that goal. Instead, it just passed the cost onto the taxpayer.
Healthcare costs in America have risen higher and faster than most industries within the past 20 years. Medical prices have risen 110% since 2000. Hospital rates are up 7.2% since January 2021.
These rising costs are forcing more people either onto Medicaid or forcing them to find subsidized coverage on the ObamaCare exchanges. In fact, this year saw a record 21.3 million Americans signing up for coverage on the ObamaCare exchanges, which is nearly 5 million more than last year and nearly double as many as in 2020.
All of that is being paid for by extra subsidies to the program under the American Rescue Plan Act and the Inflation Reduction Act. So, once again, it’s not really cutting costs, it’s just putting more of the burden on the American taxpayer.
It’s becoming more obvious by the day that the goal of the law was not to really lower costs, but to be a stepping stone towards a government controlled and paid for healthcare system.
I know President Joe Biden and other Democrats think more people dependent on the government for their healthcare is a good thing, but I don’t. Instead there should be a focused effort to implement free market reforms to our healthcare system that will actually result in lower costs in the private sector.
While most of the reforms need to be done on the federal level, there are things the Legislature could do immediately to address the problem. The first order of business should be abolishing the Certificate of Needs Board, which does nothing but stifle competition, limit healthcare availability, and raise costs for consumers. Expanding price transparency is another example of a free market reform that would help.
Of course one of the biggest solutions to the problem is continuing to create an economic environment in the state that will attract businesses and create more good paying jobs. Expanding Medicaid might do the opposite of that, dis-incentivizing many from wanting to move up the economic ladder and lose their government benefits.
If Alabama ever decided to expand Medicaid, they would just be creating more dependency on the government. This would inevitably result in higher costs to the consumer and the taxpayer, both on the federal level and the state level.
If Alabama leaders really are believers in free market conservative solutions, then they won’t feed the growing government beast that is ObamaCare.
Yaffee is a contributing writer to Yellowhammer News and hosts “The Yaffee Program” weekdays 9-11 a.m. on WVNN. You can follow him on Twitter @Yaffee
