Oren Cass ’05 writes:
In the new print issue, I’ve written about Our Medicaid Mess: the extraordinary misallocation of anti-poverty funds to one of our least effective government programs. Total anti-poverty spending relative to the population in poverty has nearly doubled over the past forty years, from $12,000 per person to $23,000 (2015 dollars). More than 90 percent of that increase has gone to health care – almost entirely Medicaid. Thanks to Obamacare, the spending growth and prioritization of health care will continue in the years to come. Medicaid now costs almost $600B per year, on par with our public education system and our military and responsible for the majority of all anti-poverty spending This overwhelming emphasis on health care would be a questionable approach to alleviating poverty even if it delivered impressive results for the health outcomes of recipients. But the larger problem is that Medicaid fails to achieve even that. Many policy wonks are familiar with the Oregon Health Insurance Experiment, in which low-income residents of the state were randomly assigned to receive or not receive Medicaid coverage. The study’s critical conclusion: “Medicaid coverage generated no significant improvements in measured physical health outcomes in the first 2 years.”
Read the whole thing.