Democrats’ Cognitive Dissonance on MOE
Speaking at the House Education and Workforce Committee hearing this morning, Secretary Sebelius gave the Administration’s views on legislation introduced in both chambers earlier this week that would repeal Medicaid maintenance of effort requirements. Specifically, the Secretary claimed that the legislation wasn’t worth the “very small” savings projected by the Congressional Budget Office. But Sen. Rockefeller told CQ that the bill would be “extraordinarily bad,” and Mother Jones called it a “kinder, gentler Medicaid gutting.” So which is it – does the bill have a “very small” impact, or is it an “extraordinarily bad” bill “gutting” Medicaid? Democrats can’t credibly claim the bill doesn’t produce savings at the same time they’re arguing it would have a tremendously bad effect on beneficiaries.
The fact is that removing the maintenance of effort requirements would achieve modest savings, while giving the states the flexibility they need better to manage their budgets at a time when states are suffering from record fiscal shortfalls. While Democrats may criticize it as both delivering meager savings and harming many beneficiaries, the reality is neither criticism is accurate.