Below is a statement from Foundation for Government Accountability Chief Executive Officer Tarren Bragdon in reaction to the latest Congressional Budget Office (CBO) analysis of ObamaCare. The CBO report factors the U.S. Supreme Court’s decision to strike down states’ requirement to expand Medicaid and implement health insurance exchanges:
The CBO’s latest analysis of ObamaCare confirms that Governor Scott made the right decision by refusing to subject Florida patients and taxpayers to a massive expansion of Medicaid, and a bureaucratic-conceived health insurance exchange. Medicaid is already a budget buster. The forced addition of more than 1 million people onto the program would turn the Medicaid safety net into a tightrope for truly needy Florida families. The Foundation for Government Accountability stands behind Governor Scott as he exercises Florida’s right to state sovereignty, and opposes the ill-conceived dictates of the federal government.
Below is a passage from the CBO report discussing the logic of refusing to expand Medicaid:
At the same time, there are significant disincentives for states to expand Medicaid eligibility. One is that states would ultimately have to bear some costs for an expansion of Medicaid coverage during a period when their budgets are already under pressure, in part from the rising costs of the existing Medicaid program. Health care costs tend to rise faster than those for other services or products in the economy. And although the 10 percent share of the costs of newly eligible people that states would ultimately bear would be a small share of total additional Medicaid spending, it would nevertheless represent a large extra cost for some states. In addition, CBO estimates, and states expect, that expanding the Medicaid-eligible population would lead to an increase in enrollment among those who would have been eligible under prior law and would not qualify for the higher federal matching rates, resulting in additional costs for participating states. States may also fear that the federal government, which faces its own severe budgetary pressures, will ultimately reduce the federal matching rate and that if it did so, rolling back expansions already in place would be difficult.