WPC's Center for Government Reform's mission is to partner with stakeholders and citizens to work toward a government focused on its core functions while improving its transparency, accountability, performance, and effectiveness for taxpayers.
Roger Stark, Health Care Policy Analyst, February, 2010
This paper discusses state-federal Medicaid financing since the 1980s and how state officials have manipulated the federal program to receive extra matching money. Washington state’s proposed provider tax and the proposed “bed tax” on nursing homes are examples of how state officials adopt policies in an effort to leverage more federal funding from the Medicaid program. Since Medicaid is an entitlement with no statutory limit on spending, there is no limit to how much state officials can try to gain from the program.