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ACA’s Medicaid Expansion: Not Good for Your Health

in Economic Liberty, Healthcare, Liberator Online, News You Can Use by Alice Salles Comments are off

ACA’s Medicaid Expansion: Not Good for Your Health

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

In 2010, just a few weeks before Congress passed the Affordable Care Act, President Barack Obama said that taxpayers “end up subsidizing the uninsured when they’re forced to go to the emergency room for care…. You can’t get … savings if those people are still going to the emergency room.”

healthcarePart of what the current administration’s signature health law was supposed to do was to increase cost savings so visits to the ER weren’t as common. After helping to pass the law, then-Speaker of the House of Representatives Nancy Pelosi claimed that “the uninsured will get coverage [so they are] no longer [being] left to the emergency room for medical care.”

Six years have passed since those who supported ACA and its main provisions promised to bring the number of ER visits down and yet, a study published in the New England Journal of Medicine shows that assuming ACA would lower the number of ER visits was a mistake.

With the expansion of Medicaid in states like Oregon, ER visits increased. But the increase is not the only consequence of Medicaid expansion. When compared to 2015, this year’s Medicaid expansion spending is 49 percent higher per enrollee than what government had expected.

In order to expand Medicaid in Oregon, officials used lottery to expand Medicaid benefits to a limited number of lower income, non-disabled adults.

According to the study’s authors, “Medicaid’s value to recipients is lower than the government’s costs of the program, and usually substantially below,” perhaps because, researchers found, expanded Medicaid coverage “resulted in significantly more outpatient visits, hospitalizations, prescription medications, and emergency department visits.”

When it comes to how Medicaid expansion pushed individuals to the ER, researchers explain that, during the past 15 months, Medicaid increased ER visits by 40 percent.

Researchers found that even if patients have Medicaid, there’s “no evidence that Medicaid coverage makes use of the physician’s office and use of ERs substitutes for one another.”

What many choose to forget is that Medicaid expansion was made possible because of ACA. And according to the government’s own projections, each Medicaid enrollee cost the taxpayer roughly $6.366 in 2015, 49 percent higher than past predictions. This cost spike is mostly due to the fact the federal government reimburses 100 percent of state spending on enrollees who were added after the expansion was launched.

When ACA became law, states were given enough incentives to pay insurance companies high payment rates so new enrollees were cared for, but the high payment rates could only be covered by the federal taxpayer. Since many physicians are leaving the system altogether, preferring to not accept new Medicaid enrollees due to lower rates, patients continued to use ER at a high rate, even higher than years past. So coverage, in this case specifically, did nothing to help patients in need. The result is higher cost to the taxpayer. Instead of making people healthier and helping individuals who are unable to afford medical care, researchers found that the result has been the exact opposite, invalidating ACA apologists.

Will they continue to ignore these results?

New Jersey’s Takeover of Camden Proves Freedom is Better Than Taxpayer-Backed Revitalization Projects

in Economic Liberty, Liberator Online, News You Can Use, Personal Liberty, Taxes by Alice Salles Comments are off

New Jersey’s Takeover of Camden Proves Freedom is Better Than Taxpayer-Backed Revitalization Projects

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

Governor Chris Christie has recently announced that the state will take control of Atlantic City’s finances. As the city’s huge debt looms over its residents and the state vows to take over, critics and experts take a closer look at a previous major takeover of the city of Camden. And since many argue that state intervention ended up failing some of Camden’s most vulnerable residents, the promise of a better Atlantic City after intervention seems somewhat unrealistic.

In 2002, the state of New Jersey poured millions of taxpayer dollars into one of the largest takeover projects in US history. At least one law school, an aquarium, and a hospital were updated. But despite the taxpayer-backed incentives, the lives of residents did not improve. Instead, poverty and crime rates in the city remain high.

Camden

Despite the interventionist failures since 2002, the state announced in 2013 that it had decided to take over the education in Camden. As you will see, the results were equally disappointing.

According to a report from 2009, the initial revitalization campaign in the city counted with $175 million in bonds and loans and a one-time $7.5 million appropriation from the state budget. Shortly after, the then-Governor Jim McGreevey appointed a chief operating officer to take over the local government and the school board. The plan was to create jobs, bring in new businesses, fix the schools and the sewers, and demolish unsafe vacant businesses.

But as the takeover came to an end in 2010, Camden remained one of the most dangerous cities in New Jersey. And despite the state’s repeating efforts to reform the education system in the city, Camden school districts remain problematic.

The New Jersey government has been responsible for running the Paterson, Newark, and Jersey City school districts for more than 20 years. In 2013, it took over Camden’s as well. During the first years under state control, Camden failed to meet performance requirements in at least five areas.

While Paterson, Newark, and Jersey City report that their graduation rates had improved, local educational leaders claim that the improvement is due to the work members of the community have been doing in partnership with educational groups.

According to Paterson Education Fund’s executive director Rosie Grant, the state takeover meant little to the community.

“The gains that we have made,” she told The Record, “have been for the most part despite the state takeover.” Instead, Grant believes that the city’s decision to break the region’s largest high schools to form smaller academies is what made Paterson great.

But not all is lost in Camden.

When it comes to education, the real revolution arrived in the form of school choice.

According to a 2015 video by Jim Epstein, school choice gave local families in Camden the ability to choose. Instead of relying solely on state-run schools that continue to fail Camden’s children to this day, the implementation of charter schools has given residents the opportunity to enroll their children in institutions where children actually learn, despite their economic background.

If the state’s intervention in Camden has anything to teach other cities across the country is that pouring taxpayer money into an issue won’t make it better. Boosting choice—and freedom—on the other hand, usually works.

If the current administration is serious about saving Atlantic City, it will avoid pouring money into the problems the city is facing. Opening its doors for businesses and competition, however, may just do the trick.

American Taxpayers on the Hook for $6 Million to Promote the Beautiful Albanian Countryside

in Business and Economy, Economic Liberty, Liberator Online, News You Can Use by Jackson Jones Comments are off

American Taxpayers on the Hook for $6 Million to Promote the Beautiful Albanian Countryside

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

You’ve got to hand it to the federal government; they really know how to throw away taxpayers’ hard-earned money. Just last week, Congress passed a budget that increases spending by some $80 billion and raises the debt ceiling for the rest of Barack Obama’s presidency.

Albania

Of course, it’s too much to ask, apparently, that lawmakers and the Obama administration take an axe to some of the wasteful spending that could take some of the burden off of taxpayers. Take the $6 million the U.S. Agency for International Development plans to give to Albania to promote tourism in the tiny Southeastern European nation, which was recently the subject of by Sen. Rand Paul’s, R-Ky., “Waste Report.”

Albania’s economy is experiencing turmoil because of the economic crisis that has ravaged Greece, its neighbor to the south. In May, for example, the World Bank backed a five-year, $1.2 billion loan program to try to boost the country as it tries to enter the European Union. The United States is, apparently, pitching in to boost Albania’s burgeoning tourism industry.

“To restart their economy, the Albanian government is hoping to capitalize on the country’s tourism potential, but it is the U.S. taxpayer who is footing at least part of the bill,” Paul’s office explains. “Amazingly, tourism is already a major contributor to the Albanian economy. According to the grant description, tourism (in total) currently accounts for 17 percent of the nation’s economy.”

“By comparison, The World Travel and Tourism Council reports that tourism contributes 9.5 percent to the worldwide economy and 8.4 percent to the U.S. economy. This means Albania’s tourism economy, as a percent of GDP, is already larger than the U.S,” it adds.

The problem for the United States is that much of what we’re spending in terms of foreign aid, such as the $6 million to promote tourism in Albania, is part of the increasing river of red ink that flows from Washington.

Albania may be a beautiful country worthy of a visit, but that doesn’t mean American taxpayers should be footing part of the bill to promote it. The national debt – currently north of $18.5 trillion – keeps growing while the federal government doles out goodies for other countries.

Not to come across overly nationalistic here, because there are many wasteful and unauthorized domestic programs that taxpayers are compelled to fund. The guide should be the United States Constitution. After looking it over, one will be shocked – absolutely shocked to discover – that there isn’t a “Promote Tourism in Other Countries” Clause.

381 Million Taxpayer Dollars Turned to Sludge

in Environment and Energy, Issues, Liberator Online, News You Can Use by Chloe Anagnos Comments are off

381 Million Taxpayer Dollars Turned to Sludge

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

On Aug. 5, a team of workers contracted by the Environmental Protection Agency (EPA) spilled 3 million gallons of orange-colored waste from the Gold King Mine into the Animas River in Colorado. The pollutants flowed into New Mexico where it merged into the San Juan River, a critical source of water for Navajo communities.

Local citizens and lawmakers alike are outraged by the lack of transparency from the EPA for the spill and now, the amount of tax dollars given to the firm responsible.

Colorado and New Mexico are now in a state of emergency because of the accident.

RiverNew Mexico governor Susana Martinez said in a press release that she is “concerned about the EPA’s lack of communication and inability to provide accurate information.” Stating that, “one day the spill is 1 million gallons, the next day, 3 million.”

Part of the frustration is the EPA’s failure to disclose the name of the contractor responsible to law makers and media outlets.

However, the Wall Street Journal (WSJ) reported that a Missouri-based firm, Environmental Restoration LLC (ER), was the “contractor whose work caused a mine spill in Colorado that released an estimated 3 million gallons of toxic sludge into a major river system.”

According to a WSJ review of data, ER received $381 million in government contracts since October 2007, approximately $364 million from the EPA and $37 million from work performed in Colorado.

That $381 million is a large chunk of change for taxpayers to spend to have pollutants that were carried to the Shiprock community on the Navajo reservation.

Despite preliminary tests showing minimum adverse health effects, Shiprock Chapter President Duane “Chili” Yazzie told CNN that he is waiting for a definitive all-clear before using river water on crops.

“Our community here, the very critical nature of our predicament is that we are a river-based community and we’re a strong agricultural community and the impact is very, very tremendous,” Yazzie said.

Around 750 families rely on the river to grow melons, corn and other crops.

According to CNN, the Navajo Nation is the first to announce legal action against the federal government. Yazzie said the EPA didn’t alert them about the spill until 24 hours after the incident, placing tribe members’ health at risk.

Navajo Nation President Russell Begaye told CNN that the spill will have a “destructive impact on the ecosystems…that the Navajo culture depends on.” Begaye also said that the Navajo Nation intends to “recover every dollar it spends on cleaning up up this mess and every dollar it loses as a result of injuries to our natural resources.”

Beyond the obvious economic impact, it is the cultural and traditional impact on the community that is the most agonizing.

The river represents a spiritual element that is the basis of the tradition of the Navajo religion and for it to be harmed is spiritually, emotionally and psychologically very difficult, Yazzie said.