Increased federal aid to states for Medicaid debated

A former economic advisor in the Clinton Administration told a congressional panel yesterday that federal aid to states for health care programs could provide a much needed spark to the U.S. economy (Source: “Experts urge more health care aid to states,” Reuters, Nov. 13, 2008).

Gene Sperling  told a House Energy and Commerce health subcommittee that the best way to buoy the U.S. economy would be through a massive stimulus package that helps states avoid deep spending cuts. Gov. Strickland has ordered two rounds of across-the-board budget cuts this year, at a time when state Medicaid expenses continue to demand a larger portion of the state budget.

Sperling’s proposal was rejected by Alan Viard of the American Enterprise Institute, who said the proposal would do little to spur economic activity because it would not stimulate new spending.