Should Federal Tax Dollars Not Fund Medicaid Benefits for Unauthorized Immigrants? (S. 131)
Do you support or oppose this bill?
What is S. 131?
(Updated April 7, 2021)
This bill — the Protect Medicaid Act — would prohibit federal money from being spent on administering state Medicaid benefits to non-citizens who break the law. If a state chooses to give Medicaid benefits to unauthorized immigrants, this bill would require that state to use its own money, rather than federal dollars, to pay for that benefit expansion.
This bill would also require the Dept. of Health and Human Services (HHS) Office of Inspector General (OIG) to review and report on:
-
How states that provide Medicaid services to unauthorized immigrants keep federal and state dollars separate;
-
Whether states providing health benefits to unauthorized immigrants use tactics, like provider taxes and intergovernmental transfers, to launder federal dollars to offset the cost of providing benefits to this population; and
-
Whether people in the U.S. illegally benefit from covered outpatient drugs purchased under the Medicaid Drug Rebate Program and the 340B program, and whether this impacts the prices American citizens pay.
Argument in favor
States that choose to extend Medicaid benefits to unauthorized immigrants shouldn’t be allowed to use federal money to pay for these politically motivated initiatives that don’t have the support of other states’ taxpayers. Giving unauthorized immigrants access to subsidized healthcare through Medicaid incentivizes further illegal immigration.
Argument opposed
Once federal dollars are given to state Medicaid programs, it’s difficult for the federal government to determine which funds are state versus federal dollars so enforcement of this bill would be challenging. States may not be able to afford to offer Medicaid to unauthorized immigrants without federal funds.
Impact
Unauthorized immigrants; state Medicaid programs; California; New York; federal Medicaid budget; and the HHS OIG.
Cost of S. 131
A CBO cost estimate is unavailable.
Additional Info
In-Depth: Sen. Bill Cassidy (R-LA) introduced this bill to ensure Medicaid’s long-term integrity by preventing states like California from using federal funds to extend Medicaid benefits to unauthorized immigrants:
“[California] Governor Newsom’s plan [to extend Medicaid to unauthorized immigrants] is a giant magnet for more illegal immigration, and it will hurt California citizens who depend on Medicaid.Simple math says you can’t add the entire population of another country to Medicaid and still take care of the American citizens who need it. In addition, the plan is unfair to vulnerable Americans and it’s not fair to middle-class families paying taxes—taking care of them should be our priority. Compassion that cannot be sustained is not compassion.”
On Twitter, Sen. Cassidy added:
“Federal tax dollars should benefit Americans, not reward people from other countries who break the law. That only encourages more illegal immigration."
Governor Newsom argues that healthcare is a “basic human right,” writing on Twitter that:
“Healthcare should be a basic human right. Republicans in DC are already attacking our efforts to provide quality, affordable healthcare to everyone who calls CA home. We cannot accept the status quo. We must keep demanding better care for ALL Californians."
This bill has nine cosponsors, all of whom are Republicans.
Of Note: Federal law already bars unauthorized immigrants from receiving Medicaid, but individual states, such as New York and California, have used state funds to expand Medicaid coverage to unauthorized immigrants. These states effectively sponsor these programs with federal dollars by not counting the administrative costs of providing Medicaid to additional individuals who’d otherwise be ineligible for support.
California Governor Gavin Newsom (D) has pledged that California will provide “sanctuary to all who seek it,” and proposed raising the age threshold to receive government-funded coverage, known as Medi-Cal, regardless of immigration status, from 19 to 26 for low-income people. Newsom’s plan would go into effect beginning July 19, 2019, and would be expected to cover 138,000 people at the cost of $260 million over FY2019-2020.
When states use their own funds to expand healthcare services to unauthorized immigrants, it’s difficult for the federal government to determine when state or federal funds are being used.
Media:
Summary by Lorelei Yang
(Photo Credit: iStockphoto.com / baona)
The Latest
-
IT: Should the U.S. implement a tax on AI to fund worker benefits, and... 🔥Are you ready to take action against climate change?Welcome to Friday, March 29th, readers and observers... Should the U.S. government implement a new tax on AI to fund displaced read more...
-
🌎 Are You Ready To Take Action Against Climate Change?Scientists claim that last year "smashed" the record for the hottest year by a large margin , offering a "dramatic testimony" of read more... Environment
-
Should U.S. Implement a New Tax on AI to Fund Worker Benefits?The debate As technology advances, artificial intelligence (AI) becomes more integrated into our society. While leaders in AI read more... Artificial Intelligence
-
SCOTUS Hears Arguments of Abortion Pill Mifepristone CaseUpdated March 27, 2024, 12:30 p.m. EST On Tuesday, March 26, the Supreme Court heard arguments about the mifepristone case, read more... Women's Health