Thursday, May 13, 2010

How To Pay For Obamacare

The State of Indiana is now pondering how it is going to pay for the cost of implementing health care reforms enacted by Congress and signed into law by President Barack Obama recently. Democrats have universally hailed the new changes. The change that will cost the state the most money is the expansion of coverage for Medicaid. Obamacare will increase eligibility to persons earning 138% of the poverty level,  or about $30,000 a year. That change is expected to increase the number of persons eligible for Medicaid in Indiana by about a half million persons from 1 million to 1.5 million, which will cover one in four Hoosiers. Under the Medicaid program, the state matches federal spending on the program. The cost of the expanded coverage in coming years is expected to be $3.5 billion, more than a billion higher than anticipated when Congress passed the new law in December. The State Budget Committee is now tasked with figuring out how to pay for it. U.S. Rep. Andre Carson and U.S. Rep. Baron Hill claim the estimates given to the State Budget Committee are flawed. Sen. Luke Kenley, who chairs the committee, wondered aloud whether Indiana would be better off to opt out of Medicaid. Democrats counter that the state will pick up a smaller percentage of the cost of the new enrollees and not all those eligible to enroll will do so. Who do you believe?

5 comments:

Michael said...

There is no way politically that Obamacare survives without getting repealed outright or gutted beyond recognition.

There is just no money for it, it is increasingly unpopular, the states are up in arms overs its costs, and the Republicans will be roaring into power in November. Not to mention the S Ct will find the mandate unconstitutional.

Concerned Taxpayer said...

SURPRISE!!!

caro1234 said...

These costs were reported in Indiana Economic Digest per an Actuary report. It says that Indiana will have to absorb $3.6 billion in costs over the next decade. Baron Hill has done no one in Indiana a favor by supporting the Health Care bill. Support Todd Young for Congressional District 9.

Mitch said...

Indiana's share of Medicaid expenditures is about 37% and the federal share is 63%. I don't know of anyone who thought that extenting health insurance coverage to those without insurance would be free. Governor Daniel's HIP plan isn't free, it is subsized by Medicaid and the use of tobacco funds.

Marycatherine Barton said...

What I believe is that the economy is collapsing, and the aware are storing up food, water, guns and ammunition, and planting survival gardens.