Florida’s new law to reduce illegal immigration has led to a significant decrease in Medicaid spending, contradicting the Congressional Budget Office’s (CBO) predictions. Since 2000, the CBO has consistently underestimated Medicaid spending by an average of $15 billion annually, while overestimating Social Security and Medicare spending.
The CBO’s latest budget outlook projected a $50 billion increase in Medicaid spending over the next decade, but it’s clear that this will also be an underestimate. The real issue is that the Medicaid program is experiencing significant overspending, with tens of billions of dollars being added to the deficit each year. Florida’s new law, Senate Bill 1718, has revealed the root cause of this problem: the influx of illegal immigrants.
Enacted on July 1, 2023, the law requires hospitals to ask patients about their legal status, collects information on their immigration status, and bans local governments from issuing identification cards to illegal immigrants. Despite predictions of economic disaster from open border activists, Florida’s economy is thriving, with lower unemployment and rising wages.
The law has also led to a dramatic reduction in uncompensated medical care costs. Although illegal immigrants are not eligible for Medicaid, hospitals must provide emergency care under federal law. In the last full fiscal year before the law, Florida spent $171.4 million on emergency Medicaid care, with the federal government covering most of the costs. This year, the state is on pace to spend just $100 million, a 40% reduction, resulting in a savings of $41.1 million for federal taxpayers and $30 million for state taxpayers.
While the exact cost of mass illegal immigration is unknown, it’s clear that the burden falls disproportionately on states in the form of housing, food, and education. The fiscal consequences of President Biden’s border crisis are being felt across the country, and voters are demanding a new direction.
