These “State Exchanges” Are a Health Care DMV
Michael Tanner at the Cato Institute has a piece, and he says that Obamacare is now a bigger mess. He focuses on the Medicaid expansion. Now, let me summarize this because it can get a little complicated when it needn’t be ’cause it uses terms that are a little nebulous. But I’ll try my best. What we do here is make the complex understandable. The health care law, in order for Obama to get a score on the total cost from the CBO of under a trillion dollars, shifted much of the new expense to the states. The health care law requires the states to bear the brunt of most of the costs of insuring all the 30 to 40, whatever million numbers of people that don’t have insurance. And largely this occurs through the Medicaid program.
Well, the states don’t have a lot of money. The states can’t print their own money. And the one thing in this ruling that might be seen as helpful is the court said that the states cannot be punished if they refuse to accept these new expenses. And what that meant was that the federal government, Obama, cannot take away their existing Medicare funds if they refuse to accept the demand of spending new amounts. So they can’t be blackmailed. They can’t be penalized. They can say, “We’re not gonna accept this responsibility. You want to spend the money, you spend it. We don’t have it, we’re not.”