Gorman in The Hill​: States are bilking Uncle Sam with Medicaid scams

By Linda Gorman 

Originally posted at The Hill, December 2017

Congress has decided to stop forcing federal taxpayers to subsidize people who live under state governments intent on levying excessive income taxes. Now, how about ending federal subsidies rewarding states that tax the heck out of health care?

When the federal government matches state payments for health services covered by Medicaid, it also matches state taxes on physicians, managed care companies, hospitals, outpatient care, nursing homes, and intermediate care facilities. The higher the taxes, the higher the matching funds. Paying states to increase health care costs is such transparently bad policy even Joe Biden called it “a scam.”