Thursday, December 5, 2013

Obamacare- Another $35B In Savings

One of the goals under the Affordable Care Act (ACA) is to enroll 21.3 million additional Americans by 2022 through the expansion of Medicaid. Thanks to 20 states with Republican governors and legislatures who refuse to participate in the expansion, the cost to the ACA will be $35 billion less.

Five of the biggest states, Texas, N. Carolina, Virginia, Florida and Georgia, by their refusal will lose out on $22.5 billion alone. New Hampshire and Pennsylvania haven't made up their minds yet. They have until January 1st 2014 to decide.

The way this works is anyone with a family of four earning less then $23,500 (138% of the current poverty level) would qualify in 2014. The ACA would pick up the tab for 100% of the costs over the next 3 years and 90% beyond that.

Because 20 states chose not to participate nearly half of the anticipated 21.3 million Americans will not be eligible by 2022. It also means taxpayers in those states will still have to pony up for all the other states who've chosen to expand. In addition having to make up the difference between what the federal government currently pays (57%) to support each state's current level of Medicaid enrollees.

Refusing ACA's Medicaid expansion seems kind of stupid on two levels. (1) State taxpayers having to pay 43% more then they would have to. (2) Excluding millions of more people who would otherwise receive help with their medical expenses. The latter most likely ending up not paying their medical bills. The costs which will be borne by hospitals, doctors and ultimately onto medical bills and medical insurance premiums which will reflect such.

Even if it cost taxpayers in those states $35 billion more, it's worth it in order to rebuke President Obama, right? That'll show em', way to go boys.

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