Free Markets, Free People


State Governors Not Happy With Democratic Health Care Plan

At least not the Medicaid portion. The reason, of course, is states are on the hook to pay about 43% of Medicaid costs. Under the pending legislation, and depending on which plan you look at (House or Senate), Medicaid would expand 11% to 20%.

As you might imagine, that would impose a huge new mandate on the states already struggling with huge budget deficits and revenue shortfalls.

State governors, in Biloxi MS for the National Governors Association meeting, expressed bi-partisan disapproval of the plans.

“I think the governors would all agree that what we don’t want from the federal government is unfunded mandates,” said Gov. Jim Douglas of Vermont, a Republican, the group’s incoming chairman. “We can’t have the Congress impose requirements that we are forced to absorb beyond our capacity to do so.”

The House plan would pay for all of the costs of new enrollments and expand Medicaid the least (11%). The Senate version, however, would expand it the most (up to 20%) and would only pay full costs for 5 years. And the Senate’s answer to the states about how to fund the mandate?

Go into debt, of course:

One of the proposals being considered by the Finance Committee would encourage states to issue bonds to cover the costs of expanding Medicaid. Governors in both parties revolted, trumpeting their opposition in a conference call last week with Senator Max Baucus, the Montana Democrat who leads the committee.

The point is that not all costs are being surfaced when the total cost of this bill at the federal level is all that is cited. The House bill, for instance, would cost an estimated $438 billion over 10 years. I want to emphasize the word “estimated” and remind readers that there has never been an estimated cost I’m aware of that has come in on or under the projection.

Of course the Senate version, with expanded coverage, would cost more and shift the cost to states in 5 years. So you’ll not only be paying for this monstrosity at a federal level, but you can count on being tapped at a state level as well.

~McQ

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9 Responses to State Governors Not Happy With Democratic Health Care Plan

  • Things are already so well handled in California we’re more than ready to pick up more load:

    http://www.chuckdevore.com/blog.asp?artid=94

    I wish I could show this to every Californian-

  • Not just California.  I’m sure that the congress members from New York will support Obamacare, even though New York isn’t far behind California in terms of how badly managed the budget is, or how large the shortfall.  If these states can’t cover their expenses as it is, how can they support an additional debt load?  Our state motto should be “Thank you sir, may we have another?”

  • Well, even his teleprompter made Ospama tell some of truth,  in a Biden moment.
    At least I’m assuming it was the teleprompter that did it since the can of spam can’t really speak without it.

    • Between that and his recent quip about “wellness prevention” you cannot help but wonder if he’s being controlled by an alien slug implanted in his left ear, and those apparent misstatements are his only way to try and clue us in.

      • Ah, but that Bush guy, he was an idiot when it came to speaking without a teleprompter to help him make mistakes.

  • … and a gift for the trial lawyers

    The newly added language in the Thursday morning version of the health bill (for those following along, it’s Section 1620 on pp. 713-721) would greatly expand the scope of these suits against third parties, while doing something entirely new: allow freelance lawyers to file them on behalf of the government — without asking permission — and collect rich bounties if they manage thereby to extract money from the defendants. Lawyers will recognize this as a qui tam procedure, of the sort that has led to a growing body of litigation filed by freelance bounty-hunters against universities, defense contractors and others alleged to have overcharged the government.

  • Something to think about – a point I tried to make on TomD when he came by and dropped his usual one liner about rich people’s lives being worth more than poor people’s.
    We can’t all be equal in life, even if we ARE equal in the eyes of the law.  It is the government’s job to ensure the later, it’s none of it’s damn business to be getting involved in the former.
     

  • “I think the governors would all agree that what we don’t want from the federal government is unfunded mandates,” said Gov. Jim Douglas of Vermont, a Republican, the group’s incoming chairman. “We can’t have the Congress impose requirements that we are forced to absorb beyond our capacity to do so.”

    If anybody who reads this is from the State* of Vermont, could they perhaps slip a copy of the following into the governor’s newspaper or attach it to his check the next time he goes to eat a burger or a moose or whatever it is you people eat:

    The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

    I realize that the Tenth Amendment has been effectively a dead letter since at least the ’60s and probably since the ’30s, and so it may be a little late to hoist the Bonnie Blue Flag and start telling Washington to pound sand when it tells the several States how they have to conduct their business, but PERHAPS the governors might consider the idea.  O’ course, if they tell Washington “no” to the unfunded mandates that will be associated with Obamacare, they’ll have to say “no” to ALL unfunded mandates.

    Wonder what that would do to the federal and state budgets!!!

    —–

    (*) There’s a reason that the “s” is capitalized, and that the name of our country is the UNITED STATES of America.

  • I wonder if the plan would cover “personal lubricant”, which will come in handy when we are ‘tapped’.

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