Home > Economy, Health Care, Obama > Obama throws all 57… err 50 states under the bus after handing them the bill for Obamacare

Obama throws all 57… err 50 states under the bus after handing them the bill for Obamacare

September 28, 2009 Leave a comment Go to comments

So, ObamaCare will destroy the budgets of all 50 states?  But what does Obama care as long as that isn’t reflected on his federal deficit, right?

Barack Obama and his allies in Congress insist that their plans to overhaul the American health-care system won’t increase the federal deficit.  So far, the CBO begs to differ, but even if one accepted that premise, it does nothing but shove costs off to the states.  According to the Wall Street Journal, the Medicaid expansion on which both HR3200 and the Baucus plan in the Senate is predicated will create massive budget crises in all 50 states:

Democrats want to use Medicaid to cover everyone up to at least 133% of the federal poverty level, or about $30,000 for a family of four. Starting in 2014, Mr. Baucus plans to spend $287 billion through 2019—or about one-third of ObamaCare’s total spending—to add some 11 million new people to the Medicaid rolls.

About 59 million people are on Medicaid today—which means that a decade from now about a quarter of the total population would be on a program originally sold as help for low-income women, children and the disabled. State budgets would explode—by $37 billion, according to the Congressional Budget Office—because they would no longer be allowed to set eligibility in line with their own decisions about taxes and spending. This is the mother—and father and crazy uncle—of unfunded mandates.

This burden would arrive on the heels of an unprecedented state fiscal crisis. As of this month, some 48 states had shortfalls in their 2010 budgets totaling $168 billion—or 24% of total state budgets. The left-wing Center for Budget and Policy Priorities expects total state deficits in 2011 to rise to $180 billion. And this is counting the $87 billion Medicaid bailout in this year’s stimulus bill.

Hot Air » Blog Archive » ObamaCare shoves costs onto states

Technorati Tags: congressional budget office,center for budget and policy priorities,american health care,medicaid rolls,medicaid expansion,american health care system,federal poverty level,barack obama,state budgets,unfunded mandates,massive budget,wall street journal,health care system,federal deficit,fiscal crisis,bailout

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