Discover How a Leading State’s Middle-Class Bears the Burden of Nationwide Taxation, Enabling Unrestricted Access to Elite Healthcare for the Wealthy

Robin Hood, the legendary hero of English folklore, was known for his daring acts of stealing from the rich to assist the downtrodden in medieval society. Despite being a scofflaw, his support for the poor and strong moral compass have endeared him to generations of children throughout the centuries.

However, President Joe Biden and California Democrat Governor Gavin Newsom have taken a different approach. Through their recent changes to California’s Medicaid program, they are effectively taxing middle-class and lower-income American taxpayers to fund the healthcare needs of wealthy Californians.

Considering the administration’s track record with similar initiatives, this action in California should come as no surprise. Biden has already implemented policies such as student loan forgiveness for couples earning up to $250,000 per year, extended Covid-related ACA subsidies for families earning up to $400,000 per year, and $7,500 subsidies for electric vehicle purchases that only benefit the wealthy. These actions contradict the very essence of Robin Hood’s intentions.

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In recent months, there have been headlines suggesting that millions of Americans will lose their Medicaid coverage as pandemic-era policies are rolled back. While some individuals may indeed lose their Medicaid benefits, leading health insurers report that the majority of them are already eligible for coverage through their employers or can enroll in heavily subsidized ACA marketplace plans.

Despite these available options, California has requested and been granted authorization by the Centers for Medicare and Medicaid Services to eliminate the need for eligibility and asset verification in Medicaid. This effectively expands the program to include even financially well-off individuals. Silicon Valley billionaires must be celebrating this decision!

With 50% of California’s Medicaid Program funded by the federal government, this change allows wealthy Californians to pass the bill for their nursing home stays onto taxpayers across the country. Furthermore, approving this request sets a dangerous precedent for other Medicaid jurisdictions.

The Social Security Act of 1940 mandates that Medicaid’s eligibility guidelines include verification of assets, income, and employment status. However, emergency measures implemented during the COVID-19 pandemic suspended these verification protocols for Medicaid enrollment.

While this approach provided immediate relief during the crisis, it was only meant to be a temporary measure according to the Families First Coronavirus Response Act. Unfortunately, it led to billions of taxpayer dollars being lost to fraud, waste, and abuse, similar to the issues seen with the Paycheck Protection Program.

For example, the Louisiana Department of Health spent $112 million on Medicaid coverage for nearly 14,000 adults who do not appear to live in Louisiana, as revealed by a state legislative audit. Simple address verification could have prevented this problem.

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Now that the pandemic is subsiding and the public health emergency has concluded, Medicaid is legally required to resume eligibility verification. However, the Centers for Medicare & Medicaid Services has recently approved California’s request to waive the “asset verification” requirement for Medi-Cal recipients, violating the Social Security Act of 1940.

As a result, American taxpayers are now responsible for covering 50% of the costs, amounting to thousands of dollars per affluent Californian annually, for a government welfare program originally intended to assist the indigent.

Despite these readily available alternatives, California requested, and has now been authorized by the Centers for Medicare and Medicaid Services, to dissolve Medicaid’s eligibility and asset verification requirements — effectively expanding the program to include even those who are well-off financially. Silicon Valley billionaires, rejoice!

There is no rational justification for this policy change. Individuals at or below 150% of the poverty line are already eligible for Medicaid. The eradication of asset verification requirements only benefits the relatively wealthy. The fact that this change has been made without opposition from both sides of the political spectrum speaks volumes about the level of backdoor maneuvering taking place.

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This is yet another clear example of federal government overreach. This unlegislated policy change raises moral, ethical, and even constitutional concerns. Can a single state, in collaboration with the executive branch, violate the law, circumvent Congress, and force the rest of the country to foot the bill?

While California has the right to accumulate deficits by spending trillions on free healthcare for its residents, it should not be allowed to do so using hard-earned money extracted from middle-class taxpayers in other states, especially when it primarily benefits the wealthy.

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