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Immigrants account for 42% of Medicaid growth

While Americans continue to struggle with the high cost of medical care, the expensive but poor coverage provided by Obamacare, and high taxation, a huge portion of  the growth in Medicaid spending has been going to immigrants.

A startling report by the Center for Immigration Studies http://cis.org/immigrant-families-accounted-for-42-percent-of-medicaid-growth-since-2011 reveals that  “A new analysis of government data shows that immigrants and their U.S.-born children (under age 18) have been among the primary beneficiaries of Medicaid growth…The data show that immigrants and their children accounted for 42 percent of the growth in Medicaid enrollment from 2011 to 2013… It seems almost certain that immigrants and their children will continue to benefit disproportionately from Obamacare…

“Among the findings:

  • The number of immigrants and their U.S.-born children (under 18) on Medicaid grew twice as fast as the number of natives and their children on Medicaid from 2011 to 2013 — 11 percent vs. 5 percent.
  • Immigrants and their children accounted for 42 percent of Medicaid enrollment growth from 2011 to 2013, even though they accounted for only 17 percent of the nation’s total population and 23 percent of overall U.S. population growth over this time period.
  • About two-thirds of the growth in Medicaid associated with immigrants was among immigrants themselves, rather than the U.S.-born children of immigrants.
  • The increase in Medicaid enrollment among immigrants and their children can be roughly estimated as costing $4.6 billion annually.
  • By 2013, 25 percent of immigrants and their children were on Medicaid, compared to 16 percent of natives and their children. “

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As the New York Analysis of Policy & Government has frequently pointed out, the United States cannot afford to be the welfare agency for the entire planet.  Immigration is, overall, a positive contribution to the United States, but only if those coming to America are contributing to, not taking from, those already in the nation.

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Lower Pay, Immigrant Competition Cloud American’s Job Prospects

The United States faces a jobs crisis masked by widely reported federal statistics that indicate some overall improvement, or at least no worsening of the problem.

Officially, the U.S. Bureau of Labor Statistics   (BLS) latest employment report gives a “U-3” unemployment rate of 6.2%, the most widely reported indicator of the jobs picture. The more accurate figure, known as the “U-6,” which includes those unemployed, employed only part time, or just marginally attached to the work force is a far higher 12.2%.

BLS also notes that the disturbingly high number of long-term unemployed remained at a very high 3.2 million, a number accounting for 32.9% of all those unemployed. As noted in a U.S. News study,   “The long-term unemployment rate remains more than double what it averaged before the downturn…and may be putting downward pressure on the overall participation rate.”

But even that far higher number doesn’t outline the real challenge facing American citizens.

Investors Business Daily  notes that the reported rise in employment from the depths of the great recession “was almost exactly matched by an equal number of “involuntary” part-time jobs—that is, workers who want a full-time job but can’t find part time.  You can thank Obamacare’s 30-hour-a-week rule for this disappearance of full time jobs. Meanwhile, the overall labor force participation rate remained at its three-decade low.”

The jobs that have come back following the depths of the recession have been lower paying than those that were lost. The Wall Street Journal reports “[T]he job market is a far cry from what it was before the financial crisis slammed the economy in 2008.  The number of jobs in manufacturing, construction and government—typically well-paying fields—has shrunk, while lower- wage work grew.  The U.S. has 1.6 million fewer manufacturing jobs than when the recession began, but 941,000 more jobs in the accommodation and food-service sector.  More than 40% of the jobs added in just the past year have come in generally lower-paying fields such as food service, retail, and temporary help.”

The bad news for Americans doesn’t stop there. An analysis by the Center for Immigration Studies (CIS)  notes that “two thirds of the net increase in employment since President Obama took office has gone to immigrant workers, primarily legal immigrants. [but also including some illegals]”

CIS outlines three steps taken by the Obama Administration that has tipped the scales in favor of immigrants versus native workers:

  • [President Obama] offered work authorization to an estimated two million illegal immigrants who arrived in the country before age 16.
  • When auditing employers who hire illegal workers, the Administration has not detained the illegal workers as a matter of policy, allowing them to take new jobs.
  • The Administration called on the Supreme Court in 2010 to strike down Arizona’s law requiring employers to verify the legal status of new workers.

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The replacement of native workers with immigrants produces a downward pressure on wages, and edges out American workers at the lower end of the earnings scale.

Overall, as noted by the Wall Street Examiner,  “Job growth is too slow to grow the U.S. out of its unemployment problem. As for the quality of the new jobs being created, let’s not even go there.”

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Health Care Reform: The Road Not Travelled

This evening the latest Obamacare deadline will pass.  Missing throughout the discussion lately has been the road not travelled—solutions to the high cost of health insurance and the coverage of the uninsured that did not involve the establishment of a vast new federal bureaucracy, the involvement of the IRS, the establishment of “death panels” and forced enrollment.

One of the key reasons health insurance is so high is the relative lack of competition.  Insurers can’t cross state lines to give potential customers a wider selection of choices.  Unfortunately, Obamacare ignored that reality. Part of the reason: the White House needed the support of insurers to gain support for the President’s plan, so their monopolies were allowed to continue.

While poorly performing hospitals and doctors should be forced to pay dearly for their malpractices, the reality is that many lawsuits are without any basis, brought under the concept that merely paying off an agreed upon sum is cheaper than going to trial.  Tort reform could lessen this burden, which greatly increases medical costs, but trial lawyers are key political contributors so this was ignored.
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Nurse practitioners could perform far more routine medical services than they currently do, but this threatens the AMA’s monopoly, and like the trial lawyers, they have great lobbyists, so this approach to reducing costs never got very far.

There were other common sense ideas, but none provided the vast patronage mill and jobs-for-politicians that Obamacare did.