April 24, 2015

According to the Pew Charitable Trust, Medicaid consumed 10.9% of North Carolina tax dollars in 2000 and 14.1% in 2013, a 29% jump in Medicaid’s claim on our revenue. (Pew Trusts)

Contrast Medicaid’s rising consumption between 2000 and 2013 with the 10% drop in the share of the budget going to public schools.

In the Governor’s proposed budget, Medicaid takes 16% of state revenue while education remains far below its 2000 share. We spend a greater piece of the government pie on the free entitlement than Georgia, Virginia or South Carolina. Clearly, ballooning Medicaid spending is squeezing education..

The Pew report said “An increase in Medicaid’s claim on each revenue dollar reduces the share of state resources available for other priorities, such as education, transportation, and public safety” (WV Gazette)

It’s time to get serious about reforming Medicaid and the Senate plan for saving money with managed care is the proven option.