Hobbs' Medicaid Fearmongering Hides the Truth About Runaway Spending

Arizona’s Medicaid program, AHCCCS, is spiraling out of control. Governor Katie Hobbs warns that trimming it would wreck our economy and yank healthcare from 600,000 residents. That’s fearmongering, plain and simple. The real threat is a program growing faster than our wallets, siphoning taxpayer dollars into a system ripe for reform.

Since the 2014 Medicaid expansion, Arizona’s enrollment has soared, hitting 2.5 million during the pandemic. Nearly one in three Arizonans now relies on a program propped up by federal cash. But what happens when that funding shrinks? Relying on Washington’s promises is a risky bet for our state’s future.

Hobbs leans on dire predictions of job losses and hospital closures to defend this runaway spending. Her argument dodges a critical point: endless growth isn’t sustainable. Arizonans deserve a government that tackles tough problems, not one that buries them under rosy projections.

Smart Medicaid policies focus on accountability. Proposals like work requirements for able-bodied adults, spending caps per enrollee, and stricter eligibility checks aim to save taxpayers up to $880 billion nationwide over ten years. These steps preserve Medicare and Social Security while ensuring aid reaches the truly needy.

Arizona’s past aligns with this approach. In the 1980s, Reagan pushed for welfare accountability. Later, Republican plans in the 1990s and during Trump’s first term favored block grants to give states control. Today, ideas like six-month eligibility reviews and limiting the ACA’s high federal match rate target waste and fraud, protecting our budget.

Hobbs cites studies claiming Medicaid cuts would kill 300,000 jobs and $30.9 billion in economic activity. Those numbers lean on shaky assumptions about federal dollars sparking $1.50 in economic activity for every buck spent. That’s a short-term boost, not a long-term plan. Taxpayers foot the bill for this fleeting high.

Medicaid’s funding model hooks states like Arizona. The federal government covers 50 to 77 percent of traditional enrollees and 90 percent of expansion adults, making it our biggest source of federal aid. But looming cuts of $88 billion a year could force Arizona to hike state Medicaid spending by 29 percent or devour 6 percent of our tax revenue. That means higher taxes, gutted schools, or tighter eligibility.

Why let Washington hold our budget hostage? Arizona’s “trigger law” would halt expansion for 550,000 childless adults if the federal match falls below 80 percent. That’s a safeguard, not a flaw. It pushes us to prioritize fiscal independence over fleeting federal funds.

Hobbs argues expansion cuts uncompensated care and boosts tax revenue. Yet those gains pale against the risk of a budget tied to federal whims. Savings in mental health or corrections don’t justify gambling our financial stability on policies that could shift overnight.

Arizona can balance healthcare access with fiscal sense. Work requirements promote self-reliance among able-bodied adults, freeing resources for kids, the disabled, and seniors. Rigorous eligibility checks stop fraud, ensuring aid flows to those who qualify. These aren’t heartless cuts; they’re targeted fixes.

Look at other states. Indiana tightens fraud oversight, while New Mexico boosts provider rates to improve care. Arizona could test ideas like paying parents as caregivers without inflating an overstretched program. Innovation, not expansion, is the answer.

Pouring more cash into Medicaid won’t solve the broader healthcare crisis. Nationwide, 29 million adults struggle with medical bills, with Hispanic and Black communities hit hardest. A bigger government program isn’t the fix. We need bold reforms that prioritize efficiency and accountability.

Arizona faces a clear choice. Will we let Medicaid’s unchecked growth jeopardize our economy, or will we demand reforms that protect taxpayers and the vulnerable? Hobbs’ defense of the current system bets our future on federal dollars that may disappear.

The path forward is proven: reforms like work requirements and spending caps cut waste while preserving care for those in need. Arizonans need leaders who confront reality, not ones who hide behind fear-based arguments.

Let’s act now. Push for accountability, streamline eligibility, and break free from federal dependence. Our state’s prosperity hangs in the balance.