Skip to main content

Think Carefully before Voting on SQ 802


So we vote next week on whether or not to expand Medicaid according to Obamacare’s provisions. A vote “Yes” on State Question 802 would expand Medicaid to able-bodied adults above the poverty line. A vote “No” would keep the status quo, with taxpayers buying health care under Medicaid mainly for poor children and pregnant mothers.


But as with just about anything proposed by initiative, State Question 802 is not really that simple. For one thing, it forever entrenches a federal program, which can be changed by Congress at any time, in our state’s constitution, which is not so easily amended. Obviously, the proponents of SQ 802 want to set the terms of the Medicaid expansion permanently, sidestepping our constitutionally instituted legislature, which is supposed to react and adjust to existing circumstances. SQ 802 would take that flexibility away.


A consequence of that reduced flexibility will likely be sacrifices in other state-financed programs such as public education, both in the near term and during inevitable future economic downturns. That’s because Medicaid will be an absolute entitlement ensconced in our constitution. Funding for public education, roads, parks, prisons, courts, and other purposes is not constitutionally protected, which means dollars that could fund them will be forced to flow to Medicaid, buying health services for able-bodied adults above the poverty line. And with prices in health care continuing to rise faster than prices of everything else, there will come a day when cuts to everything our state provides, except for constitutionally-protected Medicaid, will be deep and painful.


The commercials in favor of SQ 802 would have us all believe that Medicaid expansion is a pure financial windfall. They never say that to get the billion dollars for Medicaid from the feds, we have to put up $100 million of our own money, and they never say that the legislature has not determined a source for that money. If the legislature cannot agree on a separate source, the money MUST come from the rest of the state’s budget, and the biggest single item ripe for picking is – public education.


Proponents of SQ 802 act like Medicaid expansion is all about helping poor people. But who is funding the commercials? Obviously, it’s not poor people. It’s the big “non-profit” hospitals, with their million-dollar salaried CEOs who are funding the commercials. And that should give you a strong hint of who really benefits from Medicaid expansion. 


Low-income individuals are already getting the basic health care services they need, and hospitals are making money hand over fist. If they weren’t, new hospitals and hospital expansion construction projects would not be a constant fact of life, as they are now and have been for decades. When health care industry spokespeople claim financial hardship due to poor people not paying their bills, don’t buy it. It’s a lie. Even with the grossly inflated prices they claim on the books that, in turn, are used to exaggerate losses from charity and unpaid bills, both charity and bad debt are minor expenses for the big hospitals.


Medicaid expansion is just about making very wealthy people in the healthcare industry even richer. The rest of us will see that money only when we serve these rich people their meals, sell them a car, or add a new room to their already-opulent homes. Odds are, most of that money will just grow their stock portfolios. And that includes our $100 million, not just the billion from the feds, which is all borrowed in the name of a national government that is effectively bankrupt. At some point, we’ll be stealing from our schools to pay the big-city hospital administrators so they can buy a better model of Mercedes or yet another vacation home that’s not in Oklahoma.


But, some no doubt object, what about all those rural hospitals? They need the money!


Well, I recall a hearing in the state capitol where some nurses testified about how their rural hospital was made financially sound. They stopped operating wastefully like the big-city hospitals and stopped trying to provide services better suited to big hospitals. Then, their board was suckered into a contract where a management company used the hospital to defraud Medicare and also drove the hospital financially into the ground. No doubt, lots of equally incompetent hospital board members are all in for Medicaid expansion. Certainly those who would steal from taxpayers by defrauding Medicaid would be happy to see it grow, too. What pirate doesn't want a bigger treasure?


Health care is almost 20 percent of our economy, but that industry clearly isn’t satisfied. At what point are we going to question the wisdom of institutions that have government and insurance companies pay the bulk of medical bills while patients pretend health care is nearly free? Most of that 20 percent is a pure transfer from everybody else to wealthy health care providers and insurance companies through grossly over-priced services in an industry where competition mostly does not exist. Competition doesn’t exist because patients don’t pay their own bills; they often don’t even see them.


But, you might say, health care is a right. We all need it, not only for good health, but for dignity and life itself. You can make the same argument about food and housing, and indeed, these are often provided by government. But the problem with saying any one person has a “right” to something another person must produce is that you are also saying you have a right to another person’s labor. Paying them with taxpayer money only means you have a right to taxpayers’ labor, without recompense.


There’s a word for when a person has a “right” to another person’s labor without recompense – it’s “slavery.” Keep that in mind while casting your vote on SQ 802 on June 30.


Byron Schlomach is 1889 Institute Director and can be contacted at bschlomach@1889institute.org.


The opinions expressed in this blog are those of the author, and do not necessarily reflect the official position of 1889 Institute.


Popular posts from this blog

The Problem of Diffuse Costs and Concentrated Benefits

Do you ever find yourself observing a seemingly illogical government program , spending decision, or other strange practice and ask “how is it that no one has fixed that?” If you are like me, you encounter this phenomenon regularly. This often takes the form of a curious headline (Save Federal Funding for the Cowboy Poets!) that most people see and can’t believe is real. I would like to suggest that this phenomenon often results from the problem of diffuse costs and concentrated benefits. To understand this concept, consider a hypothetical law that assessed a $1 tax on everyone in the United States with the proceeds to be given to one individual for unrestricted use as he sees fit. The people harmed by such a law—the individual taxpayers—will not be very motivated to spend the time and effort to convince Congress to change the law. They might resent the dollar taken from them for a silly cause they don’t support, but the lost dollar isn’t worth the trouble of doing something about i...

If Data Is Supposed to Be Our Guide, the Great Coronavirus Shutdown of 2020 Should End

According to the most widely cited model projecting the course of the coronavirus outbreak, today is supposed to be Oklahoma’s peak in daily deaths. Now is a good time to go back to the beginning of the Great Coronavirus Shutdown of 2020, review the goal of our policy, and assess our current status. If our policy should be “data-driven,” as we are constantly told, then let’s actually look at the data and determine our next policy steps accordingly. Spoiler alert: according to the terms set out by those advocating for the shutdown policy, the policy’s continuance is no longer justified. The stated goal of the shutdown policy was to “flatten the curve” so as to prevent hospitals from becoming overwhelmed with COVID patients. The fear was that the virus would spread so fast that at its peak, the number of cases would exceed the overall capacity of the healthcare system. If that peak could be stretched out over a longer period of time, lives would be saved. This concept was il...

Even If Pandemic Models Were Right, Were Covid Lockdowns Wrong?

1889 has been quite critical of pandemic modeling that government officials have relied on for their Covid-19 response. We have also criticized shutdown orders in light of flaws in the models. But let’s assume for a moment that the worst predictions really would have come true if nothing was done. Even in those worst case scenarios, it’s fair to ask if our governments did the right thing. Were involuntary shutdowns justified, or would people have found a way to both limit the contagion and maintain some level of productivity? Was putting healthy citizens under house arrest acceptable even if they were willing to risk infection?   While large groups of people are often compared to herd animals, we are not sheep. We don’t behave like animals. We can, have, and will step up when our communities are in danger. When government and journalists give incomplete or false information, people will act irrationally. Depending on the situation, some will blindly follow the first aut...

Why Does Oklahoma License Polygraph Examiners?

Should polygraph examiners be licensed? In Oklahoma, a license is required to work as a polygraph examiner (a professional who applies lie-detector tests), and it is not at all obvious why. Generally, an occupation is licensed if it is obviously in the public’s interest to prevent potential bad actors from practicing. So, for example, it is argued that doctors must be licensed because, otherwise, some idiot might open a hospital in his garage and really hurt someone. And it is argued that accountants must be licensed because, otherwise, some college-dropout might offer to do accounting for an unsuspecting mom-and-pop shop, tell them their numbers look great (when, in fact, they don’t), and cause them to go bankrupt. In short, occupational licensing is supposed to either (1) prevent real, tangible harm, or (2) assure customers that their service-provider is trustworthy. However, interestingly, licensing polygraph examiners does not accomplish either of those goals because polygraph e...