Though it didn’t make national news, the Biden administration recently announced a new initiative that, despite its best intentions, will have unintended consequences for patients and, needless to say, taxpayers: the initiative further expands Medicaid to cover the latest liberal claims.
Late July, North Carolina Announced The state received a Medicaid waiver from Washington that it claims could relieve up to $4 billion in medical debt. The waiver allows hospitals to forgive unpaid medical bills for patients who meet certain income requirements and, going forward, receive higher Medicaid rebates if they agree to provide discounted or charity care according to certain criteria.
Our country is $35 trillion in debt, and Washington cannot continue to act as an ATM for every welfare expansion that states want to implement.
Ironically, the “solution” of government-sponsored debt forgiveness is in part due to the problems that government created in the first place. North Carolina, like most other states, Small Medicaid rebates Payments to doctors and hospitals. The Tar Heel State reimburses 78% of what Medicare pays for primary care. For obstetrics, the percentage is even lower, at just 68% of Medicare.
North Carolina hospitals are charging uninsured and privately insured patients higher fees to make up for the state’s lower fees for Medicaid patients, leading to rising medical debt.
The second irony is that completely forgiving medical debt reduces the incentive for patients to purchase health insurance. Plan Participating hospitals are required to “forgive all medical debt deemed uncollectible after January 1, 2014 to individuals not enrolled in Medicaid whose income is 350% or less of their prior year’s gross income.” Federal Poverty Level” That works out to $109,200 for a family of four this year.
Families earning low six figures may not be able to pay off hospital bills in full, but most families should be able to afford some. But North Carolina’s plan would wipe out their debt entirely. Just as the Biden administration’s student loan forgiveness plan discourages borrowers from paying down their debts, North Carolina’s policy would weaken Obamacare. Why should families pay hundreds of dollars a month for health insurance when they can have their medical debt forgiven later?
North Carolina’s plan is just the latest effort to use federal funds designed for health benefits to fund any left-wing cause. Medicaid currently covers housing and food costs in some states. Oregon’s Medicaid program was amended in March.Climate SupportBut the Biden administration Reversed President Trump is working to allow states to impose work requirements, a common-sense solution that would get Medicaid recipients involved in their communities and gain valuable job skills.
Our country is $35 trillion in debt, and Washington cannot continue to act as an ATM for every welfare expansion the states want to enact. While North Carolina’s plan sounds well-intentioned, shifting health care debt from patients to the federal government will not end well for our children and grandchildren, who will be paying it for decades.
