TAXPAYERS PAYING FOR FREE LUNCH!

 Weekly Opinion Editorial

FREE LUNCH

by Steve Fair

     Back in 2020, Oklahoma voters narrowly approved Medicaid expansion.  The expansion provided health care to around 200,000 previously uninsured low-income adults aged 19-64 whose income was less than $17,000 a year individually or up to $29,000 for a family of three. Back then, the federal government was paying 90% of the cost, while the state paid 10%.  Supporters of the expansion said Oklahomans would be fools to turn down ‘free’ money.  But as is often the case, the ‘free’ money the federal government was supplying to expand Medicaid is being cut.  That cut will put a great deal of pressure on Oklahoma state government.  Three observations:

     First Medicaid expansion was a short-term solution to a long-term problem.  More than 900,000 Oklahomans- 1 in 4- depend on Medicaid.  Oklahoma is among one of the unhealthiest states in the U.S.  It is also one of the poorest. Back in 2020, rural health care providers (hospitals) needed the Medicaid expansion money to help their bleeding bottom line.  The providers and recipients were willing to take the bait offered by the feds for ‘free’ money, even if they recognized it was temporary.    

     According to the Legislative Office of Fiscal Accountability (LOFT), if the feds stop funding Medicaid expansion, it will cost state taxpayers over $200 million annually starting next fiscal year.  That $200 million has to come from somewhere, so basic services (public safety, etc.) will likely be impacted. 

     Second, government should not be in the health care business.  Government’s function, according to Article 1, section 8 is to provide for the common defense and general welfare of the country.  Liberals interpret “general welfare” as the founders endorsing socialized, taxpayer funded health care.   While it is true, "general welfare" has been interpreted to include health care programs, like Medicare and Medicaid, the Supreme Court has never interpreted it as the U.S. Constitution explicitly guaranteeing right to health care.  Like pretty much everything else it touches, government involvement in health care has led to degradation and decay, not discovery and development.

     Third, free money doesn’t exist.  Somebody is always paying the bill.    Like everything else, taxpayers pay the cost of Medicaid expansion.  Government has no ‘free’ money to give.  The only money government has is what is collected from hard working citizens and then returned less a large handling fee. 

     Years ago, bars provided a ‘free’ lunch to patrons who purchased at least one drink.  The ‘free’ food was unusually high in salt, so the customers would buy more beer.  In his book, “There’s no such thing as a Free Lunch,” economist Milton Friedman points out the patrons were not really getting a free lunch, but were being duped by the bar.  The purchasers all eventually paid for their ‘free’ snack. 

     Back in 2020, Oklahoma voters-prompted by elected officials and health care providers- prioritized immediate gains over long-term consequences.  Just slightly over 50% of voters approved the expansion of Medicaid, but now 100% of Oklahoma taxpayers will pay for that non-existent free lunch.