Article Summary –
Ron Johnson, Wisconsin’s Republican U.S. Senator, claims Medicaid is a “money laundering” scheme and advocates for federal spending cuts, criticizing the “One Big Beautiful Bill Act” by President Donald Trump for not cutting enough Medicaid funding. Johnson argues that states exploit Medicaid through the Affordable Care Act’s expansion provisions, which he believes drive up costs and facilitate fraud, a point he shared during a conservative radio talk show. Critics, including advocacy groups and political opponents, argue that such cuts to Medicaid would harm millions, and they challenge the notion that Medicaid fraud is as extensive as claimed, emphasizing the risks to vulnerable populations if the cuts proceed.
Wisconsin Republican Sen. Ron Johnson brands Medicaid as a “money laundering” scheme and “fraud,” pushing for federal spending cuts. Johnson, a vocal opponent of President Trump’s spending bill, argues that its $600 billion Medicaid cuts for tax breaks aren’t sufficient. On May 27, during “The Dan O’Donnell Show,” Johnson criticized Medicaid for allegedly enabling fraud.
Johnson claims states “drive up Medicaid costs,” reimbursing more than Medicare, dubbing it “money laundering.” His office offered no further comments. Medicaid aids over 1 million low-income Wisconsinites, covering medical needs such as doctor visits and medications.
Johnson’s remarks followed inquiries about reducing federal wasteful spending. He blamed states for exploiting the Affordable Care Act’s Medicaid expansion, which covers 90% of costs for eligible residents. Wisconsin, among 10 states not participating, reportedly allows “gaming the system.”
Republicans, including Trump and House Speaker Mike Johnson, argue cuts target Medicaid fraud, but experts disagree, saying they surpass trimming waste. According to KFF, a reliable Medicaid fraud measure is lacking.
“The real fraud is Republicans like Johnson convincing Americans to cut healthcare for tax breaks for billionaires,” Protect Our Care president Brad Woodhouse stated. “Polling shows Americans don’t buy the GOP’s claims. The GOP spending bill proposes the largest healthcare cuts in U.S. history.” Philip Shulman, Democratic Party of Wisconsin’s communications director, criticized Johnson’s stance on Medicaid, used by 1.3 million Wisconsinites, while calling his vaccine claims unreliable.
Protesters against Johnson and Medicaid cuts gathered outside his Oshkosh office and a luncheon co-hosted by the Milwaukee Press Club. The House passed Trump’s budget bill on May 22 with a 215-214 vote; it now awaits Senate approval, facing opposition from some Republicans, Johnson included.
First elected in 2010, Johnson is in his third Senate term, with reelection in 2028. However, he hinted at possibly not running again during a May 28 event.
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