Georgia Will Open Pandora’s Box with “Private Option” Medicaid Expansion

By State Representative Jason Spencer (R-Woodbine) 

In ancient Greek mythology, Pandora opened a box just a little bit to see what was there and unleashed terrible evils she never expected. Expanding Medicaid under Obamacare, no matter the name or form, is opening a Pandora’s Box that Georgians will forever regret.

Unfortunately, a once staunch ally and key player in the opposition to Obamacare’s Medicaid expansion believes “[w]e have to open that box and look just a little bit and see what’s available.”

While I have great respect and admiration for the legacy-building work of State Senate Health & Human Service Chairwoman Renee Unterman (R-Buford) for championing policies to advance justice for child sexual abuse and human trafficking victims, I believe her recent change of heart to reconsider Medicaid expansion in Georgia is concerning.

It appears that this prominent state senator will be forming alliances with the Georgia Chamber of Commerce to push for a Medicaid expansion model similar to that which was implemented in the state of Arkansas called the “Private Option.”  Instead of working for Arkansas taxpayers, this program, which is now known as “Arkansas Works,” has done anything but work effectively for the state’s taxpayers. Supporters of this model believe that a Section 1115 Medicaid Waiver that Arkansas received will give the state of Georgia the ability to expand Medicaid under our terms, not those of Obamacare. That is just not true, and the disastrous experiment in Arkansas is proof.

In Arkansas, the state’s experiment with a customized, not your average Medicaid expansion program, has been a terrible boondoggle that has left Arkansas taxpayers on the hook for nearly $800 million in cost overruns, pushed the truly needy to the back of the line and left the future of Arkansas’s budget in doubt.

The problem lies in who Medicaid expansion covers.

Traditional Medicaid covers the disabled, single mothers and the poorest of our neighbors. These are fellow Georgians who truly need our help, people who don’t have any other option. Medicaid expansion covers a new group of individuals:  able-bodied, working aged, childless adults. In short, these are Georgians who are fully capable of getting a job that would provide them with private health insurance but who will, instead, fall onto the state’s Medicaid rolls and become the responsibility of Georgia’s taxpayers.

Proponents of Medicaid expansion claim that it’s federal money that could supplant state spending.  Chief proponents of Medicaid expansion say, “If you draw down federal dollars, you can free up some of those state dollars,” which implies that Georgians could save money at the expense of Washington. Arkansas’s “Private Option” proves that is not the case.

When a state expands Medicaid, it agrees to support those newly enrolled, with the support of the federal government. Unfortunately, that financial support dwindles over time, and because it is a large line item in the Congressional budget, House Speaker Paul Ryan has said that it may become a key target for cuts. That would put Georgia on the hook for covering even more of the Medicaid costs for this new enrollment base.

Furthermore, proponents state that “at some point you have to look at sustainability.” Well, a massive expansion of the state’s welfare program will put “sustainability” in a whole new light.

States that have jumped on the Obamacare Medicaid expansion bandwagon have felt the financial strain of their growing Medicaid rolls. Costs are more than expected and enrollment is higher than estimated, which puts other state programs at risk. As costs rise, states have to make up the money elsewhere in their budget. That means programs like education, transportation, and public safety in Georgia could be on the chopping block if Georgia elects to expand Medicaid traditionally or through a “Private Option” model.

Taxpayers in Georgia already foot a bill of more than $3 billion every year to cover health services through Medicaid, plus an additional $2 billion for services for the aging, developmentally disabled, addictive diseases, behavioral, mental and public health. Georgians pay for 60 percent of all births in this state through our current Medicaid program.

Our Medicaid costs have already grown by 40 percent over the last decade. With the increased enrollment through Medicaid expansion, those figures will only get worse.

As a health care provider myself, I see the needs of Georgians firsthand. These are people who aren’t ready for rougher roads, fewer first responders in their communities, and poorer performing schools just so we can provide health insurance to people who could already get it through the private sector.

As the tale of Pandora’s Box has come to signify the source of endless complications, any form of Medicaid expansion will establish a legacy of human dependency and trouble for the state’s fiscal health.  Instead, let’s establish a legacy of freedom and innovation in Georgia by rejecting this model of Medicaid expansion.

Representative Jason Spencer represents the citizens of District 180, which includes Camden, Charlton, and Ware counties. He was elected into the House of Representatives in 2010, and currently serves as the Secretary of the Special Rules Committee. He also serves on the Game Fish & Parks, Human Relations & Aging, Science and Technology, and Juvenile Justice committees. Representative Spencer is a Board Certified Physician Assistant (PA-C) where he practices primary and urgent care medicine in Southeast Georgia.

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