The Biden Administration and California Governor Gavin Newsom have just taken a bold move that flies in the face of the legacy of Robin Hood: tax the working and middle-class to fund the healthcare of the wealthy.
The Centers for Medicare and Medicaid Services recently authorized California’s request to dissolve the asset verification requirement of its Medicaid Program (known as Medi-Cal). This would expand Medi-Cal eligibility to wealthier Californians since it no longer requires a person to prove they are of modest means.
The Social Security Act of 1940 states that Medicaid’s eligibility guidelines must include verification of assets, income, and employment status. But, due to the chaos of the COVID-19 pandemic, emergency measures were taken and Medicaid enrollment grew without proper eligibility verification.
The Families First Coronavirus Response Act of 2020 temporarily put a number of relief measures in place for those in need, however the Biden Administration has since proposed and approved changes in California’s Medicaid program that would allow asset-rich Californians to stick the bill for medical expenses to taxpayers.
At least 50% of California’s Medicaid Program (Medi-Cal) is funded by the Federal Medical Assistance Program. So, if California waives the asset verification requirement, then Americans who are not from California will be paying for the healthcare of California’s wealthy.
The Biden Administration is no stranger to doing this. Student loan forgiveness for couples earning up to $250,000 per year, supplemental Covid-related ACA subsidies lasting through 2025 for families earning up to $400,000 per year, and $7,500 subsidies regardless of income for purchasing electric vehicles, are all examples of policies that contradict the moral impetus of Robin Hood.
As millions of Americans stand to lose their Medicaid coverage, many have already been offered coverage through their employers or can enroll in heavily subsidized ACA marketplace plans. This creates the plausibility that these proposed changes to California’s Medicaid are unjustified and just a way for rich Californians to stick the bill to middle-class and working-class Americans.
The approval of California’s request to dissolve the asset verification process for Medi-Cal recipients will set a concerning precedent for other states to follow suit. This raises moral, ethical, and Constitutional concerns – Does California have the right to spend money on providing free healthcare to its residents without newly legislated permission from Congress?
It is clear that allowing wealthy Californians to receive coverage under Medicaid (which is funded through Federal and state tax money) and not verifying their assets is a breach of the intentions of the Social Security Act of 1940 and will cause financial detriment to millions of families who can least afford it.
The Biden Administration and California Governor Gavin Newsom have perpetuated the opposite of Robin Hood’s moral legacy. Instead of taking from the rich to give to the poor, they are taking from the working and middle-class to give to the wealthy. This is a drastic change in policy and one that needs to be addressed and reversed before more taxpayers suffer the consequences.
