Tuesday, July 3, 2012

Repeal It: ACA Even Less Effective as More States Mull Medicaid Opt-Out

For all the talk about the taxation issue associated with the ACA, it’s worth noting that a major storm’s a-brewin’ in the states over Medicaid expansion. In the five short days since the Supreme Court ruled that the feds couldn’t withhold existing Medicaid funding from states that opt not to expand, many governors have expressed ambivalence about opening the rolls.
As Katie mentioned yesterday, Rick Scott (Florida), Bobby Jindal (Louisiana), and Scott Walker (Wisconsin) have all flatly refused to expand their states’ programs. Terry Branstad (Iowa), Chris Christie (New Jersey), Phil Bryant (Mississippi), Nikki Haley (South Carolina), Mitch Daniels (Indiana), and Bob McDonnell (Virginia) have also expressed reticence, if not outright refusal, to take on the new program. Even Rick Snyder of Michigan won’t commit to expanding Medicaid, citing budgetary concerns.
Indeed, these same fiscal issues are the primary concern with expanding Medicaid, as states fear they’ll be roped into paying for a program that they just can’t afford. Although states would only ever have to chip in 10% of the program’s cost – and that not until 2017 – that’s still an astronomical sum of money. Florida, for example, believes it will cost taxpayers $1.9 billion to cover their share of the program. And in a time when economic recovery is still an uphill climb, governors are loathe to saddle their citizens with even higher state taxes.
Of course, Medicaid isn’t merely a fiscal matter; the program was intended to provide an option for low-income individuals to have health insurance. And if states opt out of expansion, then there’s a whole class of people who will remain without insurance:

Read more: http://townhall.com/tipsheet/katehicks/2012/07/03/repeal_it_aca_even_less_effective_as_more_states_mull_medicaid_optout

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