Maine’s Massive Medicaid Expansion Still Not Funded

 

Feds Still Need to Approve Citizen-Approved Gravy Train Authorized by Ill-Informed Popular Initiative Vote

 

By:  David Deschesne

Fort Fairfield Journal, December 5, 2018

 

   When Maine voters approved the initiative question in 2017 to provide free Medicaid to nearly 70,000 additional people in the State, Socialists and Democrats jumped for joy.  However, like most initiative questions, the majority of Maine voters were short-sighted and uninformed about the issue as they weren’t aware the Maine Legislature would still have to figure out a way to fund the additional expense and the U.S. government, who would be co-funding the program, would still have to approve it.  In the end, it was a hollow, empty victory for a program that currently has no sustainable money supply to expand or support it.

   The Initiative process was developed in the early 20th century by Socialists and Communists in the U.S. as a means of exploiting the power of the uninformed and under-educated masses by appealing to two of the greatest human vices—greed and selfishness—as a way to allow voters a means of voting themselves money and benefits from the public treasury.

   Today, the Initiative and Referendum process has been hi-jacked by a technologically advanced group of Socialists and Communists—most of whom infest the Democrat party—in order to appeal to the masses via television and social media advertising barrages. 

   Knowing that most people reflexively tune out a political commercial, text or advertising banner pop-up within the first three seconds of seeing it, marketing agents for the special interest groups have focused their entire message to within that miniscule time frame.  It is that minute level of attention and education on a topic that most voters end up with in the voting booth when they vote for an idea that sounds good on its surface, but they have never invested any time into understanding the funding mechanism or long-term ramifications of their choice.

   This is what has happened with the Medicaid expansion approved by voters in Maine a year ago, which is still not implemented.

   Maine Governor Paul LePage refused to entertain any form of a tax increase on Mainers and told the legislature they would have to figure out another way to fund the unsustainably costly socialist boondoggle that will provide free health care in perpetuity to tens of thousands of additional Mainers who could be working and can pay for it themselves.

  That LePage bulwark against excessive, confiscatory taxation is about to be abolished when the socialist, Janet Mills takes over the Maine governor’s office next month.

   Mills has pledged to instantly expand the Medicaid program, also known as MaineCare, on day one of her regime, but she still does not have the money to fund it.  Instead, she is eyeing the State’s “rainy day fund” - a savings account built up by Governor LePage over the past eight years for emergencies—as a means to fund the expansion for a few months until that fund is depleted. 

   “It will be very tempting to many new and returning legislators to spend this money,” said Governor LePage.  “I urge the incoming Legislature and the Governor-elect to avoid giving in to this temptation.”

   When Maine expanded Medicaid payments in 2001 and 2003 it led to annual shortfalls of the MaineCare system of $50 million to more than $100 million, resulting in the state ceasing payments to its hospitals and racking up hundreds of millions of dollars in debt to those Maine hospitals.

   While Governor-elect Mills has stated she plans on instantly expanding Medicaid, Governor LePage notes, “First, the state must have federal approval of the state plan amendment before expanding.  Otherwise, the state is on the hook for 100 percent of the expansion costs—there won’t be any 90/10 match.  Second, the state must find a sustainable way of paying the bill.”

   Expanding MaineCare over the next five years will cost approximately $315 million. It is not “free” healthcare; somebody still has to pay the bill.  Over the next two fiscal years alone, the expansion will cost nearly $100 million—enough to fund the Department of Marine Resources, Department of Labor, Department of Environmental Protection and Department of Defense, Veterans and Emergency Management combined.  By 2021, the additional funds needed for the Medicaid expansion would be enough to fund nearly half of the University of Maine’s entire annual budget.

   Governor LePage has propose a hospital tax as a way to fund the expansion.  “This is not only how many states have funded it, but hospitals will be reimbursed for a large part of the cost of that tax by the federal government.  This is sustainable in the long term, and it protects our general fund and the rainy day fund.”

   While the feds may reimburse hospitals for now, it is important to note that the U.S. national debt is now approaching $22 trillion and is increasing by nearly $1 trillion per year.  It is no secret that the socialist-inspired welfare and health care benefits scheme enjoyed by many will eventually evaporate and come crashing to the ground when the U.S. government is no longer able to secure any new loans to continue the funding of these pet projects.

   This type of “grid down” economic scenario, reminiscent of Venezuela, Uganda, Zimbabwe and every other third-world socialist failed state is the primary reason left wing liberals are focusing so hard on the restriction of firearms to everyone in the U.S. 

   Whether the new governor and legislature will act responsibly and figure out a way to responsibly manage the expansion of Medicaid, remains to be seen.  But, the money to fund this expansion will have to come from somewhere and those who are working in Maine can expect that money to be forcefully confiscated from their paychecks at the end of the day as they will be forced to pay not only their own health care costs, but the health care costs of everyone else in Maine, as well.