I keep seeing these confident predictions from health care experts that no state would be so foolish as to reject the Medicaid expansion for their state. I want to set up a poker game with these people, to provide for my family in retirement. How many times can you say “well that’s so radical and extreme, it could never happen!” and be wrong before you review your assumptions? Here comes the New York Times with the first wave of quotes from Republican states. I’m going to annotate these with the number of people who would be covered under the Medicaid expansion (a full list will come later in the post):
Republican officials in more than a half-dozen states said they opposed expanding Medicaid or had serious doubts about it, even though the federal government would pick up all the costs in the first few years and at least 90 percent of the expenses after that [...]
Gov. Dave Heineman of Nebraska (83,898 covered in Medicaid expansion), a Republican who is chairman of the National Governors Association, indicated that he was against expanding Medicaid eligibility.
“As I have said repeatedly, if this unfunded Medicaid expansion is implemented, state aid to education and funding for the University of Nebraska will be cut or taxes will be increased,” Mr. Heineman said.
In South Carolina (344,109 covered), Rob Godfrey, a spokesman for Gov. Nikki R. Haley, said, “We’re not going to shove more South Carolinians into a broken system that further ties our hands when we know the best way to find South Carolina solutions for South Carolina health problems is through the flexibility that block grants provide.”
In New Hampshire (55,918 covered), State Representative Andrew J. Manuse said he and other Republicans were already working to block the expansion of Medicaid. “We can’t afford it,” Mr. Manuse said. “It’s as simple as that. Thank God the Supreme Court gave us an option.”
The idea that you can just point to a set of numbers and say “but it’s almost all paid for by the federal government!” and convince ideologically motivated conservatives with that reasoning is really rich. The consensus opinion on the right is that giving free services to poor people puts them on the road to serfdom and crushes their innovative spirits and shackles them rather than allowing them to grow and succeed. Really they don’t want rich people to pay for “others” to get free stuff. Either way, that’s the prevailing opinion in red states in a time that’s as conservative as its been in the last century.
And Republicans will point to the fact that expanding their rolls will bring attention to the Medicaid program, leading to people currently eligible to sign up, raising costs for the states not covered by the federal government. Ohio’s John Kasich is already making this argument, claiming it will cost the state $940 million in the first two years of implementation. Considering that practically all states are in the midst of budget crunches, with Medicaid being one of the two major state budget line items (along with public education), this argument will be effective.
The bizarre outcome for low-income residents in poverty in states that refuse the Medicaid expansion is that they will not be taxes for failing to purchase health insurance under the hardship exemption, but they will also not be eligible for subsidies on the exchanges, because the law assumed they would be captured by Medicaid. So they would be frozen in amber in a cruel, pre-ACA health care system, where their only recourse is the emergency room or free clinics like Remote Area Medical. Given that, it’s good news that the American Hospital Association plans to put up a fight:
Richard J. Umbdenstock, the president of the American Hospital Association, said that hospitals around the country would lobby for the Medicaid expansion. “If states do not avail themselves of this opportunity,” he said, “the federal money will go to other states, and hospitals will be left with large numbers of the uninsured.”
But if logic ruled this debate, and governors could be counted on to look at the costs of Medicaid expansion versus the costs of uncompensated care and make their determination thusly, we wouldn’t have a problem.
Pro Publica and Yahoo have put together state-by-state looks at how many people would be covered under the Medicaid expansion, based on this data from the Kaiser Family Foundation (also supplemented by this data from the Centers on Medicare and Medicaid Services).
This chart at Pro Publica highlights the 28 states that sued to overturn the ACA (26 in the NFIB lawsuit, and 2 in the independent lawsuit of Virginia and Oklahoma), and what their Medicaid expansion would look like. I’ll put the breakdown on the flip, but adding them all up, you’re talking about 9.15 million low-income Americans at risk from the opt-out of the expansion. I don’t expect all 28 states to opt out (Washington state won’t, for example), but it’s the benchmark we have at this time.
To be clear, I think this is a terrible outcome. CMS showed in their study that Medicaid enrollment correlates with more regular primary care, higher utilization of preventive care, and “significantly better self-reported health.” The Medicaid expansion was one of the jewels of the ACA. By giving states more leverage to reject it, the Supreme Court badly damaged the law, contrary to the reports spinning this as an unalloyed victory.
Here are those state-by-state expansion numbers, on the flip:
States who sued to overturn the ACA and their Medicaid expansion estimates (per Kaiser Family Foundation)
VA: 245,840
OK: 357,150
ME: 43,468
PA: 482,366
OH: 667,376
IN: 297,737
MI: 589,965
WI: 205,987
IA: 114,691
SC: 344,109
GA: 646,557
AL: 351,567
FL: 951,622
MS: 320,748
LA: 366,318
TX: 1,798,314
KS: 143,445
NE: 83,898
SD: 31,317
ND: 28,864
WY: 29,899
CO: 245,730
AZ: 105,428
UT: 138,918
ID: 85,883
NV: 136,563
WA: 295,662
AK: 42,794




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So tell me again why Democrats are cheering this ruling and Republicans are gnashing their teeth.
The Age of Austerity by Thomas Edsall clearly lays out the long history of Republicans going after programs that benefit the Democratic base. Apparently, Villagers can’t read.
Or don’t want to read what conflicts with this week’s talking points.
It is really easy for Republican politicians to promote the interests of selfish, unpatriotic billionaires like the Koch brothers at the expense of everyone else when their core constituency is non-wealthy, petty bigots whose main concern is ensuring that “lazy” poor people are not given any handouts.
We hate poor people. But we love the ” free” market. Can you say nullification? We should federalize it.
Now that I think of it, if this is a tax then let the Feds pay the insurance cos. Then we can fix the tax structure to account for it. Anyone who files a tax return gets the insurance.
I believe that would be that Democrats are gullible fools and Republicans are mean azz f**ks. Yeah i think that about covers it.
You gotta get with the neo liberal talking points here. The poor people are poor bc they are lazy. Otherwise they’d be making lots of bucks instead of sitting on their asses at home and getting fat. So no health insurance will help encourage them to work. If you don’t believe that then you have not been indoctrinated, comrade.
David, you’re nowhere near cynical enough.
“The consensus opinion on the right is that giving free services to poor people puts them on the road to serfdom”
IMHO, the reason for denying services to their own poor people is to drive them in a herd towards states which do offer services. Doesn’t anybody remember the way southern states talked about California’s welfare system in the ’60′s and ’70′s? They saw it as a big magnet.
I have been watching politics for some time and have concluded that the situation is simpler and more cynical. It is all ProWrestling. The Good(or Bad) Guys scream and flail, pound their fists on the mat and gnash their teeth when the Bad (or Good) Guy has them pinned in some colourfully-named trademark ‘hold’. The Guy on the mat will then do a turn-around and ‘righteously’ do in the opponent, perhaps with a folding chair, which the ref will somehow faill to see. (I am so old that I remember when only the Bad Guys used the folding chairs!)
I have done some wrestling, and the holds I see are *not* painful, I have also a long-standing connection with a lady who did first aid for ProWrestling matches for many years before she retired. Injuries are rare and mostly accidental. Although she did get to meet many of them, her favourite being The Beast.
ProWrestlers do this day after day on the Tour with no visible damage, not even bruises. It takes a lot of scripting and a lot of rehearsal. They just do it for way less money than politicians do it for.
It’s all choreography, and the screaming we are hearing now from the R-guys is just a set-up for the turnaround. Watch out for the folding chair.
Yeah it’s all posturing and role playing. Repubs know they’ve been beaten on this one, so now they’re puffing themselves up and acting vindictive to prove they still have power. They will throw more money down the hole trying to convince people that “we can’t afford it”, but with some federal gov incentives and cajoling they will come around, because they need this and the tide is totally against them.
The purpose of the MedicAid penalty was to preclude any state from opting out.
Now that SCOTUS has overturned that penalty, it makes perfect sense (financially) for any state to opt out, and a race to the bottom will ensue. That would be a terrible situation.
The bluer states will participate in the expansion, eventually paying a lot of money into it themselves regardless of the Fed subsidies. Their services will improve, and they’ll have an immigration of Medicaid patients from redder states which have opted out and maintain less robust services. The balance between states and MedicAid services will get really skewed, no?
In addition those patients are likely to bring increased coincidental costs to bluer states by needing to use benefit programs which are not even directly related to MedicAid.
That’s all part of the Kabuki Theatre that’s employed by the uniparty/duopoly system to make the public think they won this time, when it was the insurance corporations that actually benefit from this decision. Just like the argument that this law makes the uninsured pay for a portion of the services they receive at Emergency Care facilities. I don’t have health insurance and being self-pay, I negotiated with a radiologist for treatment. These are the figures I was quoted for the same treatment:
1) with insurance – $60K; with Medicare – $30K; with Cash – $13K. The ACA doesn’t address the profit incentive of the insurers, which is the big problem. There are no Repubs or Dems, only Corporatists with a few outliers who choose to represent their actual constituents, rather than their paymasters.
Let’s see, are there any precedents for this?
Hmm…
— Fidel Castro opening Cuban prisons, hospitals, and asylums for the Mariel boat-lift to the US (or not, but the story certainly has legs).
— NY police dumping homeless and addicts and other not-well-functioning persons at Zuccotti Park.
— Charter schools cherry-picking the best and leaving the slow, ADHD, troubled or just dyslexic for the public schools.
— Insurance companies cherry-picking healthy people to insure, and leaving those with ‘pre-existing condidtions’ to govt-pd insurance. OK, now they *have* to insure, but it appears that they can charge whatever they like.
So, yeah, I can see they might try it in state’s health care.
And thus the migration to the Sunbelt and the South reverses as people leave those areas for bluer states, which means that the next few censuses and congressional reapportionments will be increasingly tougher for Republicans to gerrymander.
I agree. Not that I don’t wish they had tweaked the ind. mandate a little to take away the offense to the commerce clause, i.e, created an enrollment period rather than a hard mandate. But the medicaid part was always good; and maybe they’ll end up changing the mandate part of it anyway. Maybe the Representatives don’t understand yet how much people dislike being told they have to give more of their money to an insurance company.
Think it through. With the federal government paying 90% of the cost, most of it spent in state, states will get their 10% investment back in various kinds of tax revenue.
That doesn’t mean states won’t opt out. We have abundant evidence that these people are willing to accept costs for the pleasure they get out of inflicting pain on the poor and vulnerable.
David –
There you go letting those pesky facts get in the way again. Just cheer for Obamaney. It’s all good.
I figure some of the states’ “leadership” are figuring if they don’t participate then those wretched freeloaders they hate so much in their state will move to a state that does participate. Heck, they’ll probably be handing out maps.
Michigan was one of the states that challenged it, but that was just because the attorney general here is a Republican. The state as a whole isn’t nearly as conservative as our A.G.s have been recently. And though our governor is also Republican, he’s a Chamber of Commerce style person who’s already saying exchanges need to be set up. (As opposed to saying wait until the presidential election or whenever). It’s hard to imagine him turning down medicaid money out of principle. He’s smart enough to see how this law toadies to large business interests, which is what he really relates to.
David,
Thank you for your excellent analysis. Off-topic but also timely is the GOP threat to take the Senate and kill HCA via a budget reconciliation bill. Given that much in HCA does not deal with the budget, how real is this threat?
Indeed given how many Dems are now running on “changing HCA” it would appear that the GOP need not make many election gains, if any, to get the “change HCA” thing going – which brings us back to reconciliation.
Any thoughts on this?
Book Salon up with Sibel Edmonds’ Classified Woman: The Sibel Edmonds Story – A Memoir hosted by Kevin Gosztola
That’s plausible, in part. But the people who move for better Medicaid services might be offset by other people who move the other way for other reasons (e.g., cost of living, climate, whatever) — as they do now.
We don’t know enough about how Medicaid will improve in states that expand it. Maybe it won’t be in ways significant enough to attract migration? Yet there’s a lot of money involved. Might red states encourage Medicaid recipients to benefit shop in order to nudge them elsewhere?
The actual net changes are clear as mud at this point, but it bears studying. There are lots of moving parts here. I wouldn’t underestimate the potential for increased net cost to blue states — and I think that Fed 90% subsidy amount shrinks in the out years, no? It also doesn’t cover ancillary costs I questioned above.
If I’m just an alarmist, you can say so.
Since the Pilgrims the poor and downtrodden have been marked as sinners, and worse, in this wacko religiously insane country. The measuring stick is wealth and the rewards which come from God, manifested as it is, in our health system confab (gabfest) right now. If God wanted the poor to have health care and retirement accounts, etc. he would have bestowed his abundance upon them with wealth. If you’ve lost that little pearl you don’t know squat about the Republicans and Democrats at the top of the heap of both parties. God has supposedly showered his goodness on them and not the rest. That it wasn’t the kind of shower they deserved is proof of God’s need for bifocals and a larger bladder. He certainly had enough, however, that he didn’t miss the 50 million without healthcare with his spray. But we can’t afford a hot bath let alone decent towels to clean up with.
In 2011 the AZ Legislature refused federal unemployment extensions that would have cost us nothing. They did so because UI makes people “lazy” and few of the Republican legislators cited the federal deficit as a reason. So yeah, never underestimate red states’ ability to cut their own noses off to spite their faces if it means poor people suffer.
Conservatives/teabaggers don’t enjoy monopoly on stupidity. The liberal class is as much prone to it.