Sunday, July 9, 2017

Medicaid Spending

Medicaid was passed in 1965 to cover those whose incomes were under the poverty level.  In 1997, Medicaid became available for children in families with incomes below 200% of the poverty level. In 2014, Medicaid was amended to include families with incomes below 133% of the poverty level. In 2015 Medicaid was amended to include non-citizens.


Healthcare costs have increased from 5% of GDP in 1960 to about 20% of GDP in 2017


Medicaid costs totaled $1 billion in 1966.  Medicare costs will total about $600 billion in 2017.


Total government spending in 2017 is estimated to be about $7 trillion a year.  Government Pensions   $1.4 trillion Government Health Care   $1.6 trillion Government Education  $1.0 trillion  National Defense  $0.8 trillion  Government Welfare  $0.4 trillion  All Other Spending  $1.7 trillion  Total Government Spending  $7.0 trillion  Federal Deficit  $0.6 trillion


Government spending is about 40% of GDP and it needs to be reduced to 25% of GDP.


Congress is proposing Medicaid cuts in planned increases.


US healthcare costs have risen in proportion to government subsidies.  Providers have had no incentive to reduce costs, because government will bail them out.  We have a $20 trillion debt with another $80 trillion in unfunded liabilities. This is unsustainable. We can’t continue to put this excessive spending on our national credit card. The only thing that will reduce healthcare costs is to reduce government subsidies by 5% per year over the next 20 years.


Norb Leahy, Dunwoody GA Tea Party Leader

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