Monday, October 19, 2009

Will Health Care Reform Bankrupt the States?

The costs they are not showing for any of the health care plan versions is how it will affect the states and their already burdened budgets.

From The Union Leader --

Will New Hampshire's congressional delegation vote for a health care "reform" bill that raises state Medicaid spending so high that we have to pass a broad-based tax to fund it? Based on legislation making the rounds in Washington, that is a distinct possibility.

The House bill both Reps. Carol Shea-Porter and Paul Hodes voted for would dramatically expand Medicaid to cover people earning as much as 133 percent of the federal poverty level. Under current state rules, New Hampshire covers parents of Medicaid-eligible children only if their income is less than 63 percent of the federal poverty level. The House bill would more than double the family income level at which New Hampshire would have to provide Medicaid services.

The federal government does not pay 100 percent of Medicaid costs. New Hampshire picks up half the tab. Thus, the House bill would explode state Medicaid costs.

The compromise "Baucus bill" passed in the Senate Finance Committee last week also would expand Medicaid enrollment well beyond current levels. In fact, about half of the bill's expanded insurance coverage comes from simply rewriting the rules on Medicaid eligibility so more people would qualify.

President Obama promised no tax increases of any kind on anyone earning less than $250,000 a year. But if these proposed Medicaid expansions become law, states will have to raise taxes to comply with the unfunded federal mandate.

Both bills would force states to expand coverage. There would be no choice. (More..)

Medicaid coverage is already eating up a large portion of most state budgets and is only continuing to grow. The proposed health care reform will be like adding Miracle-Gro.

If states are forced to cough up more money for expanded Medicaid coverage -- where will the money come from? Cutting programs -- the social program loving libs & Democrats won't allow that, so it will come from us in a way of a tax increase of some sort at the state level.

1 comment:

  1. I don't know what kind of health care reform will come out of this session, but I strongly suspect it won't be much. There is, however a silver lining behind this very dark cloud. I am reminded of the Civil Rights Act of 1957. Don't be embarrassed if you've never heard of it, there really isn't a hell of a lot to remember about it; a mere pittance, really - a scrap of leftovers tossed out to "American Negros" (in the parlance of the age) in order to appease them. But it made the passing of the Civil Rights Act of 1964 - the one we remember - all-the-more easier seven years later.

    We'll live to fight another day.

    Tom Degan
    Goshen, NY


Don't be scared!