Last month Congress passed another temporary stopgap measure to keep the federal government operating for a few more months. This has become a predictable ritual in Washington, reflecting our leaders’ inability to enact changes that would address our gaping budget deficits and growing debt. Nowhere is this truer than in Medicaid, a vital yet increasingly unsustainable program that pays health and long-term care expenses for more than 75 million low-income Americans.
Reform is possible, if only Washington can muster the political will to act.
Medicaid currently costs the federal government $800 billion annually, and according to official projections, its expenses are expected to surpass $1 trillion by 2028—a rate of growth that far outstrips the overall economy or family incomes.
These figures alone highlight the need for reform, but inefficiencies within the program further exacerbate its fiscal burden. For example, Medicaid’s true error rates hover between 15% and 25%, likely costing taxpayers at least $100 billion each year. Fraud and mismanagement are rampant, ranging from Medicaid managed care companies providing coverage for deceased individuals to broken computer systems that fail to track enrollment and eligibility properly.
