Medicaid began in 1965 as a safety net health insurance entitlement for low-income families with children. It is funded by both state and federal taxpayers (even though these are the same people) with state control tightly regulated by the federal government.

Over the years, Medicaid has expanded dramatically to include long-term care, those with disabilities, low-income seniors who are also in Medicare, and now with the expansion under Obamacare, able-bodied people 18 to 64 years of age without children. No surprise, the cost of Medicaid has likewise increased dramatically from $1 billion in 1970 to $577 billion in 2017. One out of every five Americans is now in Medicaid and the program is one of the top two budget items for every state.

Yesterday, Secretary Azar of The Department of Health and Human Services announced that hospitals may be able to pay for housing and food for low-income individuals using Medicaid dollars. In other words, an entitlement that started as a health insurance safety net is now expanding to essentially include wealth redistribution.