California’s Rich Exploits Medicaid at America’s Poor Expense
TL/DR –
Beginning in January, California will eliminate all asset eligibilities for Medicaid, allowing even the wealthy to qualify for the program. Critics argue this will put a strain on the system and divert resources from the poor who truly need long-term care and other services offered by Medicaid. They call for intervention by the federal government and the Centers for Medicare and Medicaid Services to ensure Medicaid is reserved for those with no other means to fund their healthcare.
Medicaid Expansion in California: A Burden for America’s Poor?
Starting January, California, the most populous U.S. state, is testing a controversial idea: ending Medicaid eligibility thresholds. This radical change, which could let wealthy Californians access aid reserved for low-income individuals, might drain resources from those who need them most.
Medicaid, a partly federally-funded, state-run health insurance program, operates differently in each of the 50 states. Federal guidelines set income and asset thresholds for eligibility, but what happens when a state dispenses with these limitations?
California’s 2021 law abolishes asset eligibility for certain populations, particularly those most in need of long-term care. This means very wealthy individuals could qualify for Medicaid, burdening a system already grappling with a massive budget deficit. This could disadvantage poorer people who need long-term services the most.
We observe this issue firsthand as healthcare professionals at a California safety-net hospital. Our patients, many on Medicaid, can remain in hospital for months after they’re medically stable due to few facilities accepting Medicaid. Granting wealthier individuals Medicaid access could exacerbate the strain on our healthcare system and deprive genuinely needy patients of essential services.
California’s law intends to protect long-term patients’ assets from being exhausted by costly care, but it also allows wealth to be passed down generations while state and federal taxes shoulder the costs. Some wealthy individuals are already exploiting loopholes to divert funds intended for the poor. Medicaid shouldn’t become another way for the rich to preserve their wealth.
The implications of this law extend beyond long-term care. Most Medicaid spending already goes towards this category, siphoning off funds for physicians, hospitals, therapists, and pharmaceuticals. This policy could exacerbate Medicaid’s existing disparities and worsen access to regular healthcare services.
The Centers for Medicare and Medicaid Services (CMS) approved these changes to California’s Medicaid eligibility without allowing public comment, which is notable considering the Biden administration rescinded a Texas waiver due to lack of public input. Congress needs to intervene to guarantee Medicaid remains for those with no other healthcare funding options.
Addressing this issue is critical regardless of political affiliation. The expansion of Medicaid to include wealthy individuals threatens care for those less fortunate. The federal government needs to halt this policy to prevent further healthcare disparities in California.
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