More Reform

There are whispers that President Bush will include in his 2006 budget a savings plan for Medicaid. Medicaid is the program that provides medical assistance to under-privileged families, the costs of which are shared by both the states and the federal government. Under the rumored plan, states would be allowed more flexibility in spending the $180 billion assistance they receive from the federal government each year, with the tradeoff being that annual per-patient growth in funding would be decreased.

Democrats will no doubt scream bloody murder at this plan, but in reality it makes a lot of sense. It will save the federal government money while forcing the states to find ways to save money themselves. In effect, this plan will force government to live within it's means, something that all levels of government have been neglecting to do of late.

If enacted, this will be an encouraging sign that President Bush is making a serious effort to curb the spending that often got out of control throughout his first term. While more fiscally responsible actions need to be taken, this is a smart move and will hopefully be the first of many new reforms passed over the next couple years. It is important that we shrink the size and scope of government, and this plan is a good step in that direction.