By Josh Archambault, Jonathan Ingram and Christie Herrera—Mr. Archambault and Ms. Herrera are Senior Fellows, and Mr. Ingram Director of Research, at the Basis for Government Accountability.
Final Monday, Indiana Governor Mike Pence unveiled his so-referred to as “conservative” situation for ObamaCare’s Medicaid expansion at the American Enterprise Institute (AEI). Pence’s program, dubbed the “Healthy Indiana Strategy two.0” or “HIP 2.,” expands Medicaid to ObamaCare amounts with so-referred to as “POWER Accounts” that are funded by taxpayers and employed by growth enrollees to spend for care.
The media exalted the Pence announcement and characterized it as the most current red state to cave to ObamaCare. Indeed, some progressives say Kathleen Sebelius’ best achievement as Wellness and Human Companies Secretary was obtaining Republican governors to increase Medicaid.
But at AEI, Pence was singing a distinct tune—he argued that he wasn’t caving into ObamaCare at all.
I’ve mentioned it ahead of and I’ll say it yet again — Obamacare must be repealed
Pence explained, (falsely) claiming his program does not implement ObamaCare but as an alternative
aids make the situation for why repeal is essential.
Even though a lot of on the proper have roundly denounced the Pence strategy as an ObamaCare Medicaid expansion, you will hear equivalent free-market rhetoric from the handful of conservatives who have tepidly come to Pence’s defense.
In spite of people supporters’ rhetoric, the Pence plan—just like similarly disguised strategies out of Arkansas and Iowa—remains an ObamaCare Medicaid expansion in disguise.
Rhetoric: The Pence plan functions as a block grant.
Reality: Pence’s Medicaid expansion is structured and funded like any other open-ended government plan.
Pence informed the AEI crowd that his plan “is not intended to be an entitlement” and “will serve as a model for what block-granted Medicaid packages could be in states across the country.”
Like the Arkansas Personal Selection, nevertheless, the Pence plan is a far cry from real block grants that conservatives have lengthy-championed.
By definition, Medicaid block grants give states a fixed, lump sum of federal dollars in exchange for broad autonomy in providing Medicaid benefits. Pence’s prepare functions neither of these elements. Below Pence’s ObamaCare expasion, Indiana will draw down rising quantities of ObamaCare in exchange for including much more individuals to the Medicaid rolls.
And as we pointed out previously, the Pence program delivers ObamaCare Medicaid positive aspects, with ObamaCare Medicaid expense-sharing, to the ObamaCare Medicaid growth population. It is the worst of all worlds for taxpayers—Indiana’s Medicaid growth beneath Pence’s plan will be a blank examine with no real incentive or versatility to manage charges.
Rhetoric: Power Accounts build on Indiana’s success with Wellness Savings Accounts (HSAs).
Reality: Electrical power Accounts below Pence’s Medicaid expansion are nothing at all like HSAs.
Dan Perrin at the HSA Coalition praises Pence’s plan as “expanding HSA-like ideas … into locations they must go to turn into broadly utilized and accepted.”
But as we mentioned previously, Energy Accounts underneath Pence’s ObamaCare expansion are a pale imitation of the accounts produced by Gov. Mitch Daniels’ authentic iteration of Healthier Indiana, and they search absolutely nothing like the HSAs that 96% of Indiana state staff have these days.
Rhetoric vs. Reality: The Mike Pence Medicaid Expansion
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