The law was written so that states refusing to comply with this provision would lose all federal funding for their existing Medicaid programs, which serve the truly needy, such as elderly and disabled individuals. But the Supreme Court found that the federal government cannot “hold a gun to the heads of the states” in this manner.
Their ruling made ObamaCare’s Medicaid expansion optional.
Pre-expansion spending is already at an unsustainable level, costing U.S. taxpayers half a trillion dollars per year and accounting for 20% of most states’ budgets. States that expand their programs could see their Medicaid obligations double in coming years.
Under ObamaCare, the federal government “promised” to fully fund the expanded programs through 2016. But there is no guarantee the federal reimbursement rate will continue as promised. In fact, even the Obama Administration hinted at reducing the amount it promised to pay.
And “full funding” is misleading. The state will pay for all new administrative fees – which can be tens or hundreds of millions per year – from the moment it expands. After 2016, states began paying for a significant portion of the expansion itself, leaving many states no option but to raise state taxes to pay for it.
States that opted to expand their Medicaid programs under ObamaCare went millions of dollars – and in some cases billions of dollars – over budget in 2015. And many of the states resorted to taking funds from their pre-expansion program that covers the truly needy to pay for ABLE-BODIED individuals.
To add insult to injury, many doctors are refusing to accept patients who rely on Medicaid as a result of slow and low reimbursement from the government. Expanding the program will make this problem worse, and it will hurt the truly needy the most. Some estimate Medicaid patients have to wait up to 6 months for an appointment.
And then there’s the further damage to those with private insurance. Insurance premiums are already skyrocketing, and policy holders will experience an even greater surge in prices if their state expands Medicaid. Since Medicaid reimbursement to doctors and hospitals is so low, they will charge even more to privately insured patients.
There is little doubt ObamaCare was designed to completely destroy private sector competition and force all Americans onto a government-run system – Medicaid expansion is a key step toward that end.
Is My State C4L Group Fighting ObamaCare Expansion?
Campaign for Liberty state groups have been fighting ObamaCare expansion across the country and have so far been successful in 19 states. While we expect active battles to continue, we’ll also be working toward repeal in states that have already expanded. That’s why we need your help.
So What Can You Do?
Check out your state Campaign for Liberty page here to see if they are currently working on this issue. (Be sure to check back often for new battles.)
If you’d like to assist Campaign for Liberty state efforts, simply click on “contact coordinator” from your state page, or send an email to [email protected]