Do We Really Want Waste and Fraud in Medicaid?

by Newt Gingrich

When I watch politicians and interest groups rail against Medicaid reform, I wonder if they have any idea what they are saying.

Medicaid is an enormous program. It costs $914 billion a year – and rising. Americans paid $584 billion in federal taxes and $326 billion in state taxes to cover it in 2024 (including the Children’s Health Insurance Program). By the way, this total cost is up from $616 billion in 2018.

So, the Medicaid program has grown by 48 percent in six years. It is the third largest mandatory spending program – making up 9 percent of the federal budget. Medicaid is bigger than the entire defense budget.

Considering that 58 percent of Americans believe there is enough waste in the federal government to balance the federal budget without raising taxes, it is strange that politicians would claim the nearly $1 trillion Medicaid program is waste-free.

In fact, politicians who oppose any changes Medicaid are supporting payments to illegal immigrants, crooks, and single, capable adults who refuse to work.

Consider the major Medicaid reforms in the House-passed budget plan:

The House budget saves more than $11 billion by prohibiting payments to illegal immigrants. Do any serious politicians want to go home and defend giving away $11 billion to people in the country illegally?

The House budget also saves $289.6 billion by requiring able-bodied adults to work to be eligible for Medicaid. Who wants to tell their hard-working constituents that their tax dollars are paying healthy people to not work?

There are also numerous provisions to eliminate or reduce fraud in Medicaid. Together, they are estimated to save $245 billion. Who wants to defend more than a quarter-trillion dollars of fraud?

Together, these three areas will save taxpayers $545 billion in Medicaid funding, reducing its cost by more than half – without touching any legitimate benefits.

But we are told by some politicians that these clear savings are really cuts. Special interest groups are running dishonest ads suggesting that Americans who need Medicaid will be hurt by reforms.

It’s all baloney – and the American people know it.

At America’s New Majority Project we have been asking Americans about these important Medicaid reforms.

Sixty-two percent oppose allowing their states to use taxpayer dollars to provide Medicaid services for illegal immigrants. This includes 75 percent of Republicans, 66 percent of independents and 47 percent of Democrats. It makes no sense for any elected Republican to oppose restrictions on Medicaid for illegal immigrants.

In fact, opposition to using state taxpayer dollars to fund Medicaid for illegal immigrants is so strong that 62 percent also support a federal law prohibiting it.

The desire to stop fraud and waste in Medicaid is even stronger. In fact, 68 percent of voters say that able-bodied people who refuse to work while receiving taxpayer-funded benefits are committing fraud.

Despite want some politicians appear to think, support for work requirements for all safety net programs is even stronger. Some 78 percent of voters support work requirements for able-bodied Americans receiving any federal benefits. Even among Medicaid recipients, 66 percent agree there should be a work requirement. And 70 percent of recent welfare recipients agree that there should be work requirements. When 89 percent of Republicans, 75 percent of independents, and 70 percent of Democrats agree on something (especially something that would save taxpayers $289.5 billion) you would think it would become law in no time.

The intense support for work requirements is exactly what we found when we shifted from welfare to workfare in the 1996 Welfare Reform Bill. There was such massive support for a work requirement that half of the House Democrats voted with us for the bill.

The next time a politician tells you we can’t reform Medicaid, ask them if they really want to pay for illegal immigrants, crooks, and adults who refuse to work. If they say yes, then you should try to replace them in the next election. If they answer no, then tell them to quit saying Medicaid reform is impossible.

This is a key turning point. We must exit the Obama-Biden path of unaffordable government, unsustainable deficits, and crushing interest payments on the debt. Otherwise, we will reach financial and moral collapse.

Passing the Republican Medicaid reforms – and saving $545 billion – will be an important step on the road to a much better American future and, ultimately, a balanced budget.

Tell your congressman and senators to vote for common sense, an affordable future, and vital reforms to Medicaid.

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