Fix Health Care Policy

Half of All States Now Suing to Stop Obamacare

If it is allowed to be implemented, Obamacare will eventually do deep and irreparable harm to our nation’s budget deficit. But while Obamacare is more of a long-term threat to fiscal health at the federal level, it is a clear and present danger to the states. Of the 34 million Americans who gain health insurance through Obamacare, over half (18 million) will receive it through Medicaid.

While Obamacare will pay for all of the benefit expansion for the first three years of the law, and 90% of it after that, Obamacare never pays for any of the state administrative costs for adding those 18 million Americans to their welfare rolls. That amounts to billions in unfunded federal mandates for states to absorb. That is why 33 Republican governors signed a letter to the White House and Congress making an emphatic appeal that Obamacare’s Medicaid provisions be repealed. (Read the rest at The Foundry…)

Tags: health insurance, low-quality care, Medicaid, ObamaCare, unconstitutional mandates

Side Effects: Cost Of Medicaid Expansion Going Nowhere But Up

In passing Obamacare, Congress has put the states in quite a pickle. To sharply expand health coverage, Obamacare flung wide the gates of Medicaid eligibility. It envisions a massive expansion of the federal-state health program that, historically, delivers low-quality care to low-income Americans.

Not a smart move.

States were already struggling to meet their share of Medicaid program costs—even though Medicaid payments to providers often don’t even cover the cost of care. And, due to the inadequate reimbursement rates, more and more doctors were already refusing to accept new Medicaid patients.

How fiscally shaky is Medicaid today? Well, last year Congress used the stimulus bill to give states $87 billion to help them cover rising Medicaid costs. And that doesn’t seem to be enough.

A recent letter from House Democrats encourages their colleagues to give states another $24 billion to help them cover Medicaid costs for another six months. “Without this funding,” the letter says, “our states will be forced to make severe cuts to Medicaid providers and benefits, and the ensuing budget shortfall would have grave consequences for school funding and other essential state programs.” (more…)

Tags: deficit, federal-state program, low-quality care, Medicaid Expansion, ObamaCare, Side Effects