Gov. Johnson believes that a bloated legislative and regulatory environment is depriving our healthcare system of the ‘competition factor’, leading to inefficient government-sanctioned monopolies.
He considers President Obama’s Patient Protection and Affordable Care Act of 2010 as unconstitutional and intends to repeal it, along with former president George W. Bush’s Medicare prescription program.
A Johnson presidency would see an immediate 43% cut on federal Medicare and Medicaid funding, with the remaining amount redirected wholly to the states, no strings attached.
Johnson believes health care should be left to the states, and allowed to grow in a free market environment. "I’m promising to submit a balanced budget to Congress in the year 2013 that will detail a 43% reduction in Medicaid and Medicare. Before anybody falls of their chair, with regard to a 43% reduction in either of those categories, it’s important to point out that if we don’t balance the federal budget, we’re gonna find ourselves without any health care at all.
So as Governor of New Mexico, I oversaw the reform of Medicaid in New Mexico. Health care to the poor - changed it from a fee for services model to a managed care model, set up better health care network, saves hundreds of millions of dollars.
I believe that at the time, if the federal government would, were to have block granted the state of New Mexico 43% less money, done away with all the strings and mandates, that I could’ve effectively overseen the delivery of health care to the poor in New Mexico. I think the same model applies to Medicare. Fifty laboratories of innovation and best practice. The federal government has to give it up to the states."
Apr 28, 2012: Johnson speaking at the Fort Worth Libertarian Party of Texas Presidential Debate
"You got to start out by talking about Medicare and Medicaid. I'll just throw out some suggestions here. There are other, but let me just throw the fact that the federal government could cut Medicaid and Medicare by 43 percent…
… They could block grant the states. I'm going to say this throughout my campaign, 50 laboratories of innovation, the notion of best practices. Give it to the states to deliver health care to the poor and those over 65 and do away with the strings. Do away with that regulations - Let states handle it. There would be best practices emerge. Other states would emulate the best practices. They'd be failure. States would avoid the failure.
In New Mexico, Medicaid, now it came with all the strings attached. It came with all the regulation attached. It came with a mandate that here are the services that you had to deliver, but Medicaid in the State of Mexico, I shifted that from a fee for service model to a managed care model and saved 25 percent. If I were to have been given Medicare, I could have done the same thing with Medicare and saved 25 percent. By the way, I used 25 percent. I could have saved more money. I still could have delivered health care to those truly in need by cutting it 43 percent, I could have done that. But I was governor of the state. I had a legislature that was 2/3 Democrat and, you know, I wasn't the benevolent dictator."
May 27, 2011: Johnson on Hannity' Primary
Johnson: Specifically, and this is waving the magic wand, because I recognize that there are three branches of government, I would have the federal government cut Medicare and Medicaid by 43 percent and block grant the programs [to the states] with no strings. Instead of giving the states one dollar—and it’s not really giving because there are strings attached—the federal government needs to give the states 57 cents, take away the strings and give the states carte blanche for how to give health care to the poor. I reformed Medicaid as governor of New Mexico and, in that context, even with strings attached, I believe I could have delivered health care to the poor. I believe I could have done the same thing with Medicare…
Holleran: Will you issue an executive order to repeal Obamacare as unconstitutional?
Johnson: Yes, if it’s possible. I would do the same for [President Bush’s Medicare] prescription [drug subsidies]. Two parties can take responsibility for where we’re at right now.
Aug 21, 2011: Interview with Gary Johnson, scottholleran.com