Medicaid to be cut

Update on this topic as it pertains to the work requirement. I am on record with no hard objection to some form of work requirement, but I also am in agreement that it may be self-defeating if it is too costly to administer (more expense to track the work requirement than simply giving it away to people who could work).

Seems like Georgia may have answered that question for us.

Two years ago, Georgia began allowing low-income adults to join Medicaid on the condition that they work or train for a job. Republicans now tout the state as a model of compassionate cost-saving health policy.

But Georgia’s experience may actually offer reason for caution, even as House Republicans this week advanced measures to impose similar conditions nationwide.

Just 12,000 of the nearly 250,000 newly eligible Georgians ultimately received Medicaid, the public health insurance program for the poor and disabled, well short of the state’s initial 50,000 goal. Administrative costs far outpaced spending on medical care. Some who do work had a tough time proving it to state officials - or their work, such as caring for ailing relatives, didn’t qualify.

A lot more detail at the link and of course another state might do it better but when your admin costs are greater than the cost of care, it would seem to be a no brainer to cut the additional layer of admin created by a work requirement.

More:

A spokesman for Georgia Gov. Brian Kemp (R), who spearheaded the Medicaid expansion with work requirements, called the governor’s health policy a success because hundreds of thousands of low-income Georgians also received insurance from private plans, including more than 1,000 who “graduated” from Medicaid to better health insurance.

Just 1,000 out of a potential 250,000 - at a cost greater than what it would have cost to simply provide them Medicaid. Win?

It might have been cheaper to give those 1000 a state-based non-refundable EITC to get a job.

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I just posted this link on another thread: 70% of people on assistance work, full time.

wrt to the cost of policing the work requirement. TIG experimented with this on the last go around. The Shinies who dominated the Michigan legislature at the time embraced it eagerly. The advocates of the Michigan legislation openly said it would cost more to police than it might save, but the objective was to force more people to take jobs the “JCs” were crying they could not fill.

Let that sink in a minute: the state of Michigan wanted to spend taxpayers money to force people to take lousy, poorly paid, jobs, for the benefit of the “JCs”.

Steve

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Re: poorly paid jobs

These days few work for minimum wage. Most get at least $18/hr. Some may say that is not enough but it is close to $40k/yr. In my area there are lots of opening for clerical work. St Louis County has 50% unfilled positions to process property tax payments. Positions pay $20/hr.

There are vacancies in trash pick-up, bus drivers, etc. Companies still complain they can’t find people willing to show up and do the work.

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iirc, the Federal minimum wage is $7.25. Some states have higher minimums. Using the BLS CPI calculator, the $1.60 minimum wage of fall 1973, is now worth $11.36. While there is an official minimum wage, it has nothing to do with the minimum income it takes to live.

Look at historical unemployment rates. Sub 4% rates are an aberration.

When you are scraping the bottom of the manpower pool, you are going to get a lot of people that, where you not so desperate for bodies, you would throw back.

Steve

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