Remember the "laboratories of democracy?" One critical part of experimentation is the ability to fail.

Increases in the federal matching rate makes "failure" (in this case, having to face up to fiscal reality) less likely.

Too bad. Increasing the federal funds may look like the "compassionate" and smart thing to do, but it offers perverse incentives, and delays the likelihood of reform.

In the meantime, look for budgets to explode and Medicaid enrollees, at least in some areas, scrounge around for physicians willing to take the way-below-market rates of Medicaid.

• posted by John LaPlante
• February 12, 2008 @ 4:02 pm
• Permalink

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