Monday, May 19, 2025

Welfare As We Know It Is Back—and It’s Bipartisan

It’s the Clinton years in reverse: Democrats and some Republicans refuse to reform Medicaid.

By Allysia Finley. Excerpts:

"When Medicaid was established in 1965, it was intended to provide healthcare for the truly indigent, sick and disabled. But ObamaCare dangled extra federal funds for states that extended eligibility to able-bodied working-age adults, including college students, which created a large new class of welfare beneficiaries."

"Nearly half of New York City residents are on Medicaid."

"California imposes a tax on insurers to obtain more federal matching funds, which allows it to extend coverage to millions of undocumented immigrants."

"During the 1990s, both parties sought to crack down on such schemes."

There was a "1991 . . . law to prevent states from using taxes on healthcare providers to milk more federal matching funds"

"Even Reps. Nancy Pelosi and Chuck Schumer voted for it."

"The 1996 welfare reforms . . . transformed the program into a block grant with work requirements and time limits on benefits."

"Employment among single mothers soared, causing childhood poverty to fall. Between 1995 and 2000, employment rates among single mothers rose to 66% from 46%. Childhood poverty rates fell to 11.3% from 13.8%."

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