From Adam Searing, Progressive Pulse blog, NC Department of Justice
NC Medicaid “broken” was the first statement from State Auditor Beth Wood in a front-page, prominently-headlined News and Observer article after a Medicaid audit was presented at a joint news conference held by Wood and Governor Pat McCrory:
“Administrative spending is 38 percent higher compared to the average of nine states with Medicaid programs of similar size,” Wood said, “or $180 million more than the average.”
Here’s the first paragraph from a November News & Observer story, “Legislative report conflicts with state audit on Medicaid costs”:
Administrative costs in the state Medicaid program are relatively low compared to other states, according to a report by the state legislature’s Fiscal Research Division. The report contradicts findings from a state audit released earlier this year that found North Carolina was spending a higher percentage of its money on administration than other states. Gov. McCrory has used the audit to push the narrative that Medicaid is “broken” and needs reform.
So, we go from breathless headlines about how horrible the Medicaid program is with regard to administrative costs to the facts which are completely different. North Carolina actually has some of the lowest administrative costs of all the states studied, not the highest. The Governor and General Assembly used this false assertion about supposedly high administrative costs in Medicaid as one of the major reasons for their refusal to expand Medicaid to 500,000 North Carolinians under the Affordable Care Act using 100 percent federal money.