Colorado's Medicaid program is facing a $1.6 billion budget hole, and the state's governor, Jared Polis, is taking drastic measures to address it. But is the problem really a lack of revenue, or is it something more complex? In this episode, the speaker delves into the numbers and reveals a surprising truth about the state's Medicaid program.

The speaker argues that the issue isn't a flood of new people signing up for Medicaid, but rather the rising cost of care itself. Despite a 31% decrease in enrollment over five years, the program's cost has increased by 92%. The speaker points to the price of prescription drugs and long-term care as major contributors to the problem. But what's behind the rising costs, and why is the government unable to control them?

The speaker takes a closer look at the pharmacy benefit managers, middlemen that sit between patients and pharmacies, and how they're driving up costs. They're not just marking up prices, but also engaging in a shell game called spread pricing, where they bill insurance companies one price and pay pharmacies a smaller amount, pocketing the difference. This practice is costing taxpayers billions.

If you're thinking that Medicare for all is the solution, think again. The speaker argues that putting more people on a government-run health care program will only lead to longer wait times and higher costs. Instead, we should be focusing on breaking up the pharmacy benefit managers and making prices transparent. Listen to this episode to hear the speaker's case against Medicare for all and learn how Colorado's Medicaid program can serve as a warning sign for the country.

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