February 27, 2015

Based on new research reported in Forbes, expanding Medicaid’s free benefits to able bodied, childless adults could lead up to 93,000 people to quit the workforce in North Carolina.

That finding stands in stark contrast to claims ObamaCare advocates make that spending 3 billion state tax dollars to match federal dollars for Medicaid expansion would create a fountain of jobs. And we’re not hearing facts on the other side.

The nonpartisan National Bureau of Economic Research found that when states have previously given Medicaid’s free benefits to able bodied, childless adults, between 2 and 10 percent of those getting benefits dropout of the Labor force compared to those on a waiting list for benefits.

Like any welfare program, Medicaid expansion contains a powerful disincentive to work since earnings above the income limit cuts benefits. Before now, vulnerable groups who can’t work like the disabled have been eligible for Medicaid. But ObamaCare expands Medicaid to able bodied adults who can work. Experience from previous expansions by states shows able bodied adults will cut back work effort to get or keep their new entitlement as the National Bureau of Economic Research study proved.

While the newspapers pushing ObamaCare Medicaid expansion claim it’s a jobs bill, they have not reported it could actually reduce the workforce by up to 93,000. That’s why conservatives oppose this new welfare entitlement. The conservative majority in the Legislature is about more people on the job, not fewer