John Kennedy Calls Out Witness For 'One Of The Most Extraordinary Statements' He's Heard

[0:05] Dr. Blaise, before President Obama expanded Medicaid to include able-bodied working adults, [0:18] traditional Medicaid covered the poor, pregnant women, people with disabilities. Is that correct? [0:26] That's correct, Senator. [0:28] And today those people are still covered, are they not? [0:30] Correct. [0:32] And is it not the case that for those folks in traditional Medicaid, [0:38] for every $1 that, this is an average, for every $1 that a state puts up, the federal government puts up, $1.33. [0:52] Does that sound about right? [0:53] That's average across the country, Senator. [0:55] All right, now President Obama, through Obamacare, extended Medicaid to able-bodied working adults. [1:03] Is that correct? [1:04] Correct. [1:05] And on average, the federal government, for those, I'll call them Obamacare, Medicaid expansion [1:15] enrollees, for every $1 that the state puts up, the federal government puts up $9. Is that correct? [1:22] That's correct. [1:23] Okay. So if you're a governor, for traditional Medicaid, you can get $1.33. For Obamacare expansion [1:35] enrollees, you can get $9. [1:38] That's the math that they face. [1:39] Right. [1:40] Now, if you're a governor, you're going to try to get as many people on Medicaid through Obamacare [1:48] expansion, are you not? [1:50] That is the incentive that states have, Senator. [1:52] Yes. [1:52] Do some governors cheat? [1:56] There are definitely some states that have a massive problem of improper enrollment. [2:02] So people who would be- [2:04] Do some states cheat? [2:06] Yes. [2:07] Okay. [2:08] Many states cheat. [2:11] Now, the states determine, in accordance with federal rules, who's eligible for Medicare. Is [2:21] that for Medicaid? Is that the case? [2:23] Yes. [2:24] Okay. Now, they have to do it in compliance with federal rules, right? [2:29] There's the federal eligibility rules that the federal government does a very poor job of enforcing. [2:34] Do all states follow the federal rules? [2:38] No, they don't. [2:39] Some of them cheat, don't they? [2:41] Many of them cheat. [2:42] All right. [2:43] Do some states just accept people's word that they make a certain amount of money and therefore [2:51] qualify for Medicaid? [2:53] Yes, Senator. [2:53] Do all states say, listen, we hear you and we're not saying you're lying, but we're going to cross-check [3:05] your application with our state income tax records. Do all states do that? [3:09] Not all states do that. [3:11] Okay. If they did, they would find out that some people are lying, wouldn't they? [3:17] They would. [3:18] Now, what's your best guess as to how much per year this cheating costs the federal taxpayer? [3:32] We released a report on this yesterday, Senator, and estimated that it's $33 billion. It was $33 [3:38] billion in 2024. [3:40] Okay. And that's $33 billion that is taken away from the people who really need Medicaid. Is that right? [3:51] Yes. [3:52] Has anybody gone to jail for doing this? [3:56] Not to my knowledge. [3:58] Don't you think we ought to start putting people in jail for cheating? [4:02] I think that it's financial fraud against the federal government, yes. [4:06] Sir, on the end, I'm sorry, I can't read your name. Sir, I'm sorry. Don't you think we ought to put [4:14] people in jail for cheating? [4:18] Senator, I do not believe states are cheating. [4:22] You don't believe they're cheating? [4:23] I do not believe that. [4:24] If they were cheating, what planet did you just parachute in from, sir? [4:31] Sir, I've worked on this program for a long time. [4:36] But I'm going to be sure I understand, but states do not cheat. [4:39] You don't believe states are cheating? [4:41] I do not believe states are cheating. [4:42] Do you believe in the tooth fairy, sir? [4:48] Do you believe in the Easter bunny? [4:52] Do you believe that Jimmy Hoffa died of natural causes? [4:57] You're not answering. [4:59] I do not believe states are cheating in their administration of the Medicaid program. [5:03] Okay. I'm glad you have some water in front of you because your pants are on fire. [5:14] I'm going to go back to Dr. Blaise. [5:19] Tell me in the 13 seconds I have left, other than putting these people in jail, [5:26] both the people who cheat and the bureaucrats who allow them to cheat. [5:30] How else you would fix Medicaid? [5:32] So the key problem with Medicaid is that the more states spend, [5:36] the more money they get from the federal government. [5:38] So to set the certain amount that states get, [5:41] and all state spending on top of that comes from the state, that would be an ideal reform. [5:46] But I'd say a first order reform is to end the discrimination against the most vulnerable. [5:51] There shouldn't be the federal government incentivizing states with seven times more money [5:58] for the able-bodied than traditional enrollees. [6:00] Sir, to the gentleman in the end, I don't mean to be rude to you, [6:04] but if you really believe there's no cheating, you need to put down the bong. [6:11] That's one of the most extraordinary statements I've ever heard a witness make. [6:17] Thank you, Mr. Chairman.