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Federal Audit of Oregon Health Plan Demonstrates Crony Capitalism Hurts

April 15, 2016

I read today in the Portland Tribune about a recent Federal audit of Oregon's Medicaid program, known as the Oregon Health Plan detailing at least 10 million dollars in waste. While this is likely the tip of the iceberg, it doesn't make any determinations into the inefficiencies that Oregon's bloated state bureaucracy is famous for, ala the 305 Million dollar Cover Oregon boondoggle. It does however reveal the crony capitalism that is built into these type of top down, government programs. The story talks about how some CCO's are making big profits, which wasn't supposed to be the case when they sold this turkey to the legislature. It is however typical of the special backroom deals that get cut where government creates winners and losers depending on how much money gets spent buying legislative votes.

 

This is nothing new of course with the special tax deals that Nike and Intel cut for themselves in the legislature (with anti corporation Democrats in control no less) a few years back or the Willamette Week story about Oregon hospitals really cashing in on ObamaCare by not providing hardly any charity care, largely the result of Oregon's budget busting Medicaid expansion.

 

None of this was done without design and forethought mind you. As ObamaCare is designed to drive the free market health care system into oblivion, it is apparent that Medicaid expansion and crony capitalist deals that the CCO's and Hospital's get will only hasten the call for statewide, universal health care. This is happening in Colorado where there is a ballot initiative for state funded universal health care paid for by a new 10% payroll tax, which will have the all too predictable very negative economic impact on jobs and businesses if passed this fall by the people.

 

The bottom line is this: government cronyism has been around as long as there have been governments and the socialist/communist failed examples of such cronyism ought to clearly point out that crony capitalism only rewards the few at the expense of the masses. Socialist ideas like ObamaCare have benefited a precious few at the expense of the many, the very people it was supposed to help. The Inspector General's report only reinforces this fact.

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