Question

"Medicaid planning represents a fraud on one's fellow taxpayers. It is asking me to pay your bills so you can leave your money to your children." Do you agree or disagree? Why? Also, respond to another student's post.

Answer 1

I agree with this statement as Medicaid indeed is a fraud on one’s fellow taxpayers. Medicaid provides health coverage to millions of Americans and this includes low-income citizens as well. The Medicaid program is jointly funded by the states and the federal government and the funding is done through their revenues. A portion of the revenue of states and federal government accrues from taxes paid by taxpayers like us.

Thus Medicaid is using the taxpayer’s money to provide health coverage to those citizens who cannot afford it as they belong to low-income class. Medicaid is funded by Federal payroll taxes and general tax revenues and hence essentially uses a tax payer’s hard earned money to help a low-income citizen to seek government help for medical coverage and hence save money for his next generation.