Medicaid Spending is Increasing – And It’s Not Pharmaceuticals

Elliott Spitzer is taking aim at out of control Medicaid spending. But it’s not pharmaceuticals that are problem. Spitzer’s got it figured out and the real problem is hospitals, nursing home institutions and unions that are driving costs.

As reported in Sunday’s New York Times, “the messages from the governor that have resonated loudest are contentious, simple and blunt: First, that Medicaid spending, already too high, is rising dangerously fast; and second, that the blame lies primarily with the hospital and nursing home industry, and a powerful union of health care workers.”

And the truth about Medicaid spending comes out.