3 Problems With Indiana’s Medicaid Expansion

It’s official: Indiana has given in and adopted Obamacare’s Medicaid expansion. Before jumping into the weeds of Indiana’s Medicaid expansion agreement with the Obama administration, it is important to realize the agreement still fails some basic principles of reform.

First, it adds more people on to the Medicaid rolls, not fewer. The Indiana plan puts 350,000 more Hoosiers on to the overstretched welfare program. Reform should be grounded in reducing Medicaid dependence, not increasing it.

Second, it requires more government spending, not less. The Indiana plan will increase Medicaid spending by having the federal taxpayers pick up 90 percent of the costs. Again, reforms should aim to reduce government spending, not increase or merely shift it.

Third, it makes the road to repeal of Obamacare harder, not easier. The Indiana plan offers the Obama administration another big gain in expanding Obamacare in the states. Just as the states have clearly rejected Obamacare’s exchanges, states should equally clearly reject this administration’s relentless Medicaid expansion.

This Medicaid expansion, like the others, loses sight of the fundamentals. As Heritage has long argued, there are far better ways to expand coverage and care for low-income persons. It’s time to get back to the basics.