View Full Version : General Politics The Unfunded Mandate. A State Budget Killer

09-29-2009, 06:37 AM
Interesting little tidbit on how the "hide the weenie" game is played by the Feds.

Based on this, would we expect a general outcry coming from governors in opposition? Seems to me that this thing is smelling more and more like 3 day old fish guts.

Here is the tidbit:

Monday, September 28, 2009
The unfunded mandate at the heart of the Baucus Bill

The WSJ has been reading through Max Baucus's bill and has found out the secret sauce that allowed Baucus to write a bill that didn't expand the federal deficit as much as the House bills. He just dumps the burden onto the states.
The more we inspect Max Baucus's health-care bill, the worse it looks. Today's howler: One reason it allegedly "pays for itself" over 10 years is because it would break all 50 state budgets by permanently expanding Medicaid, the joint state-federal program for the poor.

Democrats want to use Medicaid to cover everyone up to at least 133% of the federal poverty level, or about $30,000 for a family of four. Starting in 2014, Mr. Baucus plans to spend $287 billion through 2019—or about one-third of ObamaCare's total spending—to add some 11 million new people to the Medicaid rolls.

About 59 million people are on Medicaid today—which means that a decade from now about a quarter of the total population would be on a program originally sold as help for low-income women, children and the disabled. State budgets would explode—by $37 billion, according to the Congressional Budget Office—because they would no longer be allowed to set eligibility in line with their own decisions about taxes and spending. This is the mother—and father and crazy uncle—of unfunded mandates.
Medicaid is already breaking state budgets. This will only exacerbate their problems.
Mr. Baucus hopes to use his printing press to bribe the governors, at least for a time. Currently, the federal government pays about 57 cents out of every dollar the states spend on Medicaid, though the "matching rate" ranges as high as 76% in some states. That would rise to 95%—but only for five years. After that, who knows? It all depends on which budget Congress ends up ruining. Either the states will be slammed, or Washington will extend these extra payments into perpetuity—despite the fact that CBO expects purely federal spending on Medicaid to consume 5% of GDP by 2035 under current law.

As for the poor uninsured, they'll be shunted off into what Democratic backbencher Ron Wyden calls a "caste system." While some people will be eligible for subsidized private health insurance, everyone in the lowest income bracket will be forced into Medicaid, the country's worst insurance program by a long shot. States try to control spending by restricting access to prescription drugs and specialists. About 40% of U.S. physicians won't accept Medicaid at all.
Where are the doctors going to come from to take all these additional Medicaid patients?

Expect a further law that would forbid doctors from refusing to take Medicaid patients. And then expect fewer people to go into the medical profession as more federal laws control what they do.

09-29-2009, 06:59 AM
All 50 states? JFC.....

09-29-2009, 07:14 AM
That is awesome. And the best part is the money that is gonna be saved from Medicaid fraud will pay for everything.


09-29-2009, 08:43 AM
Payment in Lieu of Taxes. Look that one up and you can see how the Feds are ripping off the western states at the expense of their economies and schools.

09-29-2009, 09:00 AM
Seccession here we come!

09-29-2009, 12:24 PM
That is awesome. And the best part is the money that is gonna be saved from Medicaid fraud will pay for everything.


I am so sick of hearing that excuse. Why hasn't the fraud been handled before now if it has been tracked?

You know the Federal Government brought down the largest hospital corporate in the US in the mid 90s. Columbia was a fantastic company to work for. That was the year that Medicare was in danger of not being funded properly to the tune of 300,000,000. Columbia was offering incentives for the elderly and moderate payment programs in which they actually didn't need supplement plans. The plans threw a fit in congress and an investigation was done. Out of 600 hospitals nationwide, two were reported for misconduct and Medicare fraud - both with only one physician providing falsified billing. Columbia was fined..... guess the amount...... 300,000,000 exactly. It brought down the chain and eventually thousands of employees nationwide.

It wouldn't surprise me to see the same actions yet again with this fraud claim.

09-29-2009, 12:41 PM
I am so sick of hearing that excuse.

Dude, I hope you know I was kidding.


Taco John
09-29-2009, 12:42 PM
It's ****ing great seeing Republicans excited about philisophical republicanism again.

Power to the Republic!

09-29-2009, 12:43 PM
Dude, I hope you know I was kidding.


Of course.