Walker column: Why Medicaid reform is appropriate
Battle lines are being drawn in
From fiscal year 2019 to fiscal year 2024, federal spending on these programs surged from
In addition, improper payments under Medicaid and CHIP were estimated at
Taxpayers deserve greater accountability, and vulnerable Americans require a stable safety net. Reform does not mean abandonment. It means modernization, targeting, responsibility and accountability. There are several practical steps that
First, enact and enforce work requirements for able-bodied adults without dependent children. Medicaid and similar programs must serve as springboards to independence, not long-term crutches.
Second, terminate the remaining COVID-era expansions of Medicaid and CHIP. The public health emergency has long since ended. It is time to roll back the extraordinary measures that were meant to be temporary.
Third, restrict federal Medicaid funding to documented residents only. Emergency services for undocumented immigrants may remain, but such coverage should be the responsibility of states that choose to provide it — without federal reimbursement. Continuing to subsidize such coverage invites further undocumented immigration and undermines enforcement efforts.
Fourth, crack down on state-level reimbursement schemes that exploit loopholes to game the federal match system. These practices siphon taxpayer dollars and distort the original purpose.
Fifth, tighten federal oversight by enhancing audits, upgrading internal controls, and ramping up enforcement. Fraud, waste and abuse must be aggressively rooted out. While some level of error is inevitable in large systems, tolerance for it should never be.
Finally, lawmakers should consider capping federal costs and providing states more flexibility through block grants with minimal federal standards. States understand their populations better and can design more efficient, effective programs as long as accountability remains in place.
Of course, reforming Medicaid and CHIP is just one piece of a larger puzzle. The broader
We must move away from the fee-for-service model, which rewards volume over value. Instead, payments based on capitation and diagnosis payment approaches can promote better care at a lower cost.
Liability reform is also long overdue. Adopting safe-harbor standards of care would curb unnecessary services and reduce malpractice litigation costs. In addition, the federal government should implement recommendations from the
We must also make subsidies and premiums more progressive. Healthcare financial aid should be more progressive. Additionally, the tax exclusion for employer-provided health insurance should be scaled back.
In the long term, we must reconsider the federal role in healthcare. One option is a universal, publicly funded plan that covers preventive, wellness and catastrophic care. Americans could purchase supplemental coverage, while additional federal efforts would focus on veterans, low-income individuals and those with disabilities.
It is time to face the facts. Medicaid and CHIP have grown dramatically, are inefficient and vulnerable to abuse. Reform is not only responsible but also essential. Delaying action puts taxpayers and those in need at risk.


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