Federal Government, Not States, to Cover Medicaid Health Insurance Expansion
One of the reasons that many state governments have been skeptical of healthcare reform is the opinion that it is an unfunded mandate imposed on them.
Each state is largely responsible for funding Medicare, the health insurance program for those near and under the poverty level.
This year, most state legislatures have been struggling with their budgets.
Due to the recession, there have been fewer income and property taxes coming in.
Unlike the federal government, virtually all state governments are constitutionally banned from running annual budget deficits.
(Vermont is the sole exception).
The additional financial obligation of increased funding for Medicaid understandably scares them.
After the temporary increased funding from the 2009 stimulus package expires, things could get even worse.
States in the South and West, which currently have the strictest eligibility standards, will see the most effect; on the other hand, those states with more generous guidelines will see little change.
However, a recent study shows that states may be over-hyping their plight.
According to the Kaiser Family Foundation's analysis, states will contribute relatively little to the additional cost.
Instead, the national Congress will provide most of the funding for insuring nearly 16 million people - about half of those expected to gain coverage under affordable health insurance reform.
They will receive full funding from the federal government until 2016, and 90 percent funding until 2010.
The poorest regions already have about 75 percent of their Medicaid costs covered by the federal government, despite their protests.
Moreover, states will also be free from paying for uncompensated care at provided to the uninsured at hospitals, because many of those people will now have health insurance coverage that reimburses health care providers (albeit at less than ideal rates).
Of course, the fact that the nation's spending on Medicaid will rise by 22 percent over the next decade is its own concern.
Governors, however, should be heartened that the states' share is predicted to increase by just one percent.
Each state is largely responsible for funding Medicare, the health insurance program for those near and under the poverty level.
This year, most state legislatures have been struggling with their budgets.
Due to the recession, there have been fewer income and property taxes coming in.
Unlike the federal government, virtually all state governments are constitutionally banned from running annual budget deficits.
(Vermont is the sole exception).
The additional financial obligation of increased funding for Medicaid understandably scares them.
After the temporary increased funding from the 2009 stimulus package expires, things could get even worse.
States in the South and West, which currently have the strictest eligibility standards, will see the most effect; on the other hand, those states with more generous guidelines will see little change.
However, a recent study shows that states may be over-hyping their plight.
According to the Kaiser Family Foundation's analysis, states will contribute relatively little to the additional cost.
Instead, the national Congress will provide most of the funding for insuring nearly 16 million people - about half of those expected to gain coverage under affordable health insurance reform.
They will receive full funding from the federal government until 2016, and 90 percent funding until 2010.
The poorest regions already have about 75 percent of their Medicaid costs covered by the federal government, despite their protests.
Moreover, states will also be free from paying for uncompensated care at provided to the uninsured at hospitals, because many of those people will now have health insurance coverage that reimburses health care providers (albeit at less than ideal rates).
Of course, the fact that the nation's spending on Medicaid will rise by 22 percent over the next decade is its own concern.
Governors, however, should be heartened that the states' share is predicted to increase by just one percent.