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Author Topic:   Health Care Policy ( for now) (for the future ) (your best observations )
Posts: 835
Joined: 12-22-2015
Member Rating: 1.2

Message 1 of 2 (810385)
05-29-2017 3:53 AM

I was just thinking about "free stuff" and what it means.

The cost to the nation.

The cost to the states.

I thought of Medicaid.

It has historically been "free" in the "free stuff" kind of way.

And it covers over 74 million people (close to 23% I suppose)


I know that Medicaid costs the federal government $389 billion a year.

But that is only going to be a bit more than 60% of the total cost since states pay about 40%

The total cost ( which I don't know ) will be about $250 billion more.

The number will be around $650 I suppose.

(conservatives claim that the Medicaid payments only cover 89% of the actual costs that the program pays, so that disputed claim complicates matters a bit, so be aware )

(Medicaid payments are ironically higher for the same prescription drug than the insurance companies pay )

We see the total cost now .


I got to thinking about the states that had the most "free stuff".

I already know that West Virginia has the most Medicaid recipients.

29% in West Virginia are on Medicaid.

So how is the tax situation there at the local level?

This link says they are among the lower half. It is The Register Herald of Beckley W. VA.


Here is a conservative source.

A quote from the latter


The Mountaineer State's overall tax burden is about average

My observations are going to be obvious to many .

The state that has about the most unhealthy people - on endless measures - , and the seemingly most poorly endowed finances (low incomes for a tax base ), nevertheless, finds itself able to fund its Medicaid program costs without some bloody apocalyptic blowout of its treasury. With not having too many noteworthy fiscal issues if any (the situation seems very noneventful really ).

I might add that there doesn't seem to be a flood of Virginia emigrants flocking to West Virginia for the "free stuff " fwiw.

( I will work in my FEDERAL GOV OBSERVATIONS now )

Yes the federal government pays its typical 60% as is standard ( a bit more with the Obama expansion ), but this poor state funds its state employed workers insurance plus it's Medicaid receiving legions.

Speaking of which, the federal costs are $389 billion a year.

About 2% of GDP, though state costs bring it up to 3% and some change.

Make it 3.5% if you factor in the conservative claim that it only pays 89%

This means that 23% of the nation on "free stuff" is 3.5% of GDP.

The VA covers another 2-3% so we only have about 74% to go.

The most expensive of the rest are the elderly and they get the vast majority of their bills already covered by Medicare and ( ironically ) Medicaid.

I don't see the scary math here.

I just don't.

Any of your observations? On anything else?

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Message 2 of 2 (810399)
05-29-2017 7:51 AM

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