Governors met in Washington, D.C. last week to discuss the repeal of Obamacare and the future of Medicaid expansion. The meeting was rather sobering at times as they were presented with different proposals. The financial blog Zero Hedge reported in a very good post:
|Click on image to expand|
a presentation from Avalere Health and McKinsey warned that the policies proposed by Republican congressional leaders to repeal and replace Obama's signature healthcare law would lead millions of people to lose their health coverage, while states lose billions in Federal funding.
The presentation, reproduced below, estimates that the number of people covered by Obamacare through the individual insurance market could be reduced by as much as 51% in states that chose not to expand Medicaid coverage under Obamacare and by 30% in those that did expand the federal-state health program for the poor. The governors’ meeting came at a pivotal moment in the debate over the future of the health law, which Republicans have pledged to overturn.
The Republican party controls the White House, the Senate, the House of Representatives and 33 state governorships; it is also getting cold feet about repealing, replacing or even overhauling Obamacare out of concerns what it would mean for existing coverage, which would lead to millions of Americans losing insurance, and potentially truncating the careers of many politicians. It would also mean the end of millions in Federal government handouts to states coming to an end.
Roughly 12 million people gained Medicaid coverage after Obamacare broadened eligibility for the program. From 2014 through the middle of 2015, states got $79 billion of extra funding from the Medicaid expansion, according to the Kaiser Family Foundation. Under the health law, the federal government paid 100 percent of the cost of the expansion from 2014 to 2016. The government’s share fell to 95 percent this year and was scheduled to fall to 90 percent by 2020.
On the other hand, Obamacare premiums for those paying into the program have soared in the past two years, sucking up a substantial portion of US household disposable income, and leading to widespread displeasure among the US middle-class with the existing format of the healthcare law....
Republican governors in states that expanded Medicaid have been telling their congressional delegations for months that repealing the health-care law without an adequate replacement would cost their budgets and hurt hospitals. While many say they support repealing Obamacare, they’ve advised a heavy dose of caution. Republican leaders in Washington are considering ending the Medicaid expansion, as well as setting per-person caps on federal funding of the program. “Governors know about 50 times more about Medicaid than anyone in Congress,” said Haley Barbour, the former Republican governor of Mississippi. “The idea that we’re going to repeal, repair, replace, redundant, whatever -- the idea that we’re going to do that in a matter of weeks just ignores the difficulty of doing it,” Barbour said....
Kingfish note: Skyrocketing Obamacare premiums and high deductibles versus the cost of shutting down Medicaid expansion and possibly kicking people off of the rolls. A lovely trap set up by the former President. People shriek if cut off and people shriek when they can't afford Obamacare. What to do, what to do, what to do, tis the question.