Letter: Privatizing Medicaid has created a mess
Someone should have told the governor that a private corporation can never perform a project cheaper than the government. It would have saved Iowa this managed care mess.
There are primarily three elements in doing a project. They are labor, technology and finance. The government and corporations draw from the same labor and technology pools. The finances are completely different. The corporation must borrow all its money from stockholders or lending institutions and these groups expect to get paid back with interest.
The government gets its money from taxes that do not get paid back and there are no interest payments. If the government chooses to borrow even its costs are lower than for corporations.
In the governor’s first term of office he was going to save the taxpayers money by privatizing the maintenance of the highway rest stops. The first corporation turned the rest areas into cesspools. The second corporation cleaned them up right except it now costs the taxpayers double the cost.
The same thing has started with the Medicaid corporations complaining they need more money.
The conservatives in Washington want to make the Medicaid payments to the states into block grants. That means as the states’ costs for Medicaid increase because of inflation and higher cost, the Washington grant money will stay the same or be reduced. Our new governor thinks this is a great idea.
Gee! I wonder who will pick up the tab for this conservative nightmare?
Dean E. Owens