D.C. Needs to Start Rewarding Efficiency, not Inefficiency

By: Governor Rick Scott
I recently traveled to D.C. to fight for Florida as the U.S. Senate debated repealing and replacing Obamacare. For far too long, D.C. politicians have focused only on the grand bargain of repealing and replacing Obamacare, ignoring the opportunity to make incremental changes to get rid of the taxes and mandates and roll back the federal welfare state.
For decades, the federal government has been willing to spend more than it takes in. We all know this is not sustainable, leaving debt for our children and grandchildren – more than $19 trillion in debt and counting. The inaction we’ve seen on repealing Obamacare shows that hasn’t changed. Throughout this healthcare debate, a lot of people have been advocating for bigger government, and not a lot of people have been advocating for taxpayers. I will always advocate for Florida’s hardworking taxpayers.
While a new bill has been introduced this week, it has taken far too long to get rid of the disaster of Obamacare, and I fear the politicians in Washington will never find common ground on this critical topic. There is absolutely no question that Obamacare must be repealed immediately so Americans can actually afford to purchase health insurance.
To lower costs, fundamental reform to the Medicaid program is needed. Obamacare encouraged a massive expansion of Medicaid to cover able-bodied, working-aged adults, even as 600,000 elderly Americans and individuals with disabilities nationwide sit on waiting lists to access services through this program.
States like Florida that have run increasingly efficient Medicaid programs, and have not expanded Medicaid, must be rewarded and treated fairly under any bill. What’s concerning is that under the most recently proposed Senate bill, tax and spend states like New York will continue to be rewarded for running an inefficient Medicaid program.
Long before the Obamacare debate, New York ran a terribly inefficient Medicaid program for decades which ran up their state’s deficit and hindered their economy. Florida is the exact opposite. We have been efficient with our dollars while providing quality care to those who truly need Medicaid.
As a reward for its fiscal irresponsibility, for every dollar New York pays in federal income taxes, they receive a quarter back from the federal government for Medicaid. In comparison, Florida only receives 16 cents for every tax dollar that is sent to Washington. Current Congressional bills lock in past federal spending, which would make this inequity permanent.
That makes absolutely no sense. If Florida is going to get a smaller rate of return on its federal taxes, shouldn’t our federal taxes be cut? New York, with fewer residents than Florida, receives more than $33 billion per year for Medicaid while Florida receives less than $15 billion. How is permanently locking in these spending levels fair to Floridians when New York has been terribly inefficient with their taxpayers’ dollars? The federal government should cut income taxes for Floridians by 30 percent. This would put our share of federal Medicaid funding as a percentage of taxes paid on par with New York. This reduction would save Floridians thousands each year.
The federal government must start rewarding efficient states like Florida and stop rewarding inefficient states. Our taxpayers deserve nothing less.