LIZ PEEK: Democrats are squealing over latest Trump plan to cut wasteful spending for one reason
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It turns out that Democrats benefit from some of the wasteful spending being exposed by the Trump White House



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Published March 11, 2025 5:00am EDT

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### No question DOGE will uncover waste, fraud, abuse during Medicare audit: Dr. Marc Siegel

Fox News senior medical analyst Dr. Marc Siegel joins 'America Reports’ to discuss the Department of Government Efficiency’s audit of Medicare and studies suggesting some Americans could get healthier by rejoining the work force.

The truth is that simply rooting out fraudulent payments from Medicaid (and Medicare) would go a long way towards providing that sort of savings. Last year, the GAO reported "improper payments" from federal Medicaid outlays amounted to $51.3 billion in 2023 (and Medicare’s improper payments totaled another $51 billion). The Medicaid figurewas significantly higher in prior years, and only fell because of "flexibilities granted to states during the COVID-19 public health emergency." In 2021, fraudulent payments totaled $103.4 billion and in 2022 totaled $83.1 billion. The GAO warns the improper payments rate is likely headed higher.

Medicaid spending has more than doubled over the past decade, despite real median incomes expanding by 14% and the poverty rate plunging from 14% to 11.5%. There were 48.3 million Americans living in poverty in 2013 in the U.S.; by 2022 that number had dropped to 41.9 million. Given that Medicaid is mainly a program targeting low-income Americans, the numbers do not make sense.

President Biden, in the year before he expected to run for a second term, pushed through rules changes that significantly increased Medicaid’s enrollment and costs, according to the Centers for Medicare and Medicaid services. The  estimated the federal cost of Biden’s rules at between $68.5 billion and $134.8 billion over five years. One rule weakens the eligibility requirements of enrollees in part by mandating that state Medicaid programs discount pensions, annuities and retirement funds in determining income levels.

In addition, some states, like New York, have allowed illegal immigrants to receive Medicaid; that has boosted the numbers as well.

Why do Democrats work to expand Medicaid? Because, like any other benefit, recipients often reward state officials for their supposed generosity, indifferent to the costs. Democrat-run New York, for example, spent $94.6 billion on Medicaid in fiscal 2023, or more than $4,800 for each resident; that was 82% above the national average. The state alone paid out $1,800 per capita on Medicaid, more than double the U.S. average of $835.

Readying their opposition to trimming the program’s out-of-control outlays, Democrats invited Medicaid beneficiaries to attend Trump’s address to Congress, hoping to highlight their dependence on the program. During the speech, Democrats chanted and waved lollipop signs that said "SAVE MEDICAID;" as it happened, their embarrassing shenanigans – and especially their sullen refusal to applaud a young cancer victim or a hostage brought home from Russia - drowned out their message.

They will not stop, however. Progressive mouthpiece , D-N.Y., said on Instagram after the speech: "Trump not mentioning Medicaid at the State of the Union is the game. He doesn’t talk about it, what he fears, and he knows it’s dynamite."

It actually may turn out to be dynamite, an explosive issue favoring Republicans. A new survey by pollster Scott Rasmussen reveals that "71% of voters support reducing growth of Medicaid spending by removing illegal immigrants and requiring able-bodied recipients to work. 88% of Republicans and 51% of Democrats back the proposal."

If even a majority of Democrats agrees that Medicaid spending has to be curtailed, the mandate for reform is stark.  My view: cut spending that nearly everyone agrees is "unsustainable" and let them squeal.



Liz Peek is a Fox News contributor and former partner of major bracket Wall Street firm Wertheim & Company. A former columnist for the Fiscal Times, she writes for The Hill and contributes frequently to Fox News, the New York Sun and other publications. For more visit LizPeek.com. Follow her on Twitter @LizPeek.

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