Jim Nussle: “Let me tell Members what is happening to Medicaid. Let us assume for a moment that was coming out of Medicaid, $2…”

“Let me tell Members what is happening to Medicaid. Let us assume for a moment that was coming out of Medicaid, $2 billion was coming out of Medicaid. Sounds like a lot of money; it is a lot of money, particularly if you are a small business back home and people are trying to raise taxes. Let me show what happens to Medicaid with and without the reform. Instead of spending $1.15 trillion over the next 5 years, we are saying there are States out there that the Department of Health and Human Services has discovered are wasting or transferring approximately $9 billion per year of what the Secretary of Health and Human Services said were suspicious transfers or suspicious spending. Not one penny of that, he is claiming, is going to nursing homes or seniors, not one penny. He is saying it is suspicious because the States are playing games with that money. So what we say is, we want to look for that money and find out whether or not the States are doing that.”