Utah to raise taxes on the sick to pay for Medicaid expansion?

September 27, 2015
c

Make bees angry, get stung in return

Utah is one of the many states that has so far resisted expanding Medicaid under Obamacare. It’s a smart decision: While the Federal government (read, the entire nations through taxes or borrowing) pays for an initial 90% of that expansion, that percentage goes down over the years and leaves the state more and more on the hook. It’s a delayed budget-buster that would force a state to impose its own ruinous taxation; Medicaid already eats a huge portion of state budgets, and this would make the problem far worse.

So, the Utah legislature has refused to commit fiscal suicide by expanding Medicaid, but the Governor, Gary Herbert, is determined to pull that trigger. So, they’ve looked for a “compromise” that would garner more funding for Utah Medicaid. And what does that compromise entail? I bet you can guess…

New taxes:

According to the few specifics made public, the biggest component of the negotiated framework is to levy a new “assessment” on medical providers in Utah to help pay for the state’s share of expansion. But the so-called assessment is simply a new Obamacare tax on the sick that will not only raise health care costs for all Utahns, but add significantly to the national debt.

Provider Taxes Are Taxes On Everyone

Gov. Herbert says this plan will allow the state to expand Medicaid under Obamacare without the need to “raise taxes” to pay for it. But the proposed provider tax is still a tax – and not just on providers.

Hospitals and other providers won’t pay this tax. Although they may write a check and send it to the state treasury, they won’t bear the burden of a new tax. As Milton Friedman frequently explained: only people can pay taxes. This new Obamacare expansion tax will simply be passed along to Utahns seeking medical care.

Worse yet, this new tax will be borne not just by sick Utahns, but by taxpayers everywhere. This new scheme was designed specifically to draw in more money from federal taxpayers.

Here’s how it works: hospitals and other providers will pay an “assessment” to the Utah government. Utah will then turnaround and spend those dollars in order to trigger federal “matching” dollars for Medicaid expansion. In this case, federal taxpayers will have to kick in an extra $9 or more for every dollar Utah collects from the sick.

And remember: there is no magic pot of Obamacare money to cover those funds. Any federal money Utah spends on Obamacare expansion will simply be added to the national debt.

So, in summary, there are three major things wrong here:

  • Proponents of the measure, including the Governor, are lying to the people of Utah. Call it an “assessment” or a “fee” or even “broiled fish,” a tax is still a tax. John Roberts notwithstanding.
  • They are also lying when they say the tax will be borne by providers. Bullsh… Er… Nonsense. This cost will be passed on to those receiving services: the sick.
  • The federal government will have to borrow money or raise taxes to pay its share if this. Either way, that’s more from you and me.

And, on top of it all, Medicaid expansion is still a looming fiscal disaster for the Beehive State.

This stinks to High Heaven. The good people of Utah should contact their legislators and the governor’s office to remind them that a) they do not like even more of their hard-earned money being snatched from their pockets to pay for stupid ideas; and b) elections have consequences, especially for pols determined to do dumb things.

Advertisements

#Obamacare Chronicles: Ohio Medicaid expansion costs $3 billion in first 15 months

April 30, 2015
Kasich 2016?

Kasich 2016?

Well, this should be a big help to Governor Kasich’s potential presidential campaign. Nothing like a budget-busting entitlement to advertise one’s bona fides as a fiscal conservative:

Americans’ tax burden is already $3 billion heavier because of Ohio Gov. John Kasich’s expansion of Medicaid under Obamacare.

By putting more able-bodied, working-age childless adults on Medicaid than Kasich projected, Obamacare expansion is reducing incentives to work and threatening traditional Medicaid recipients’ access to care faster and at greater cost than anticipated.

After Kasich expanded Medicaid unilaterally, a state panel approved $2.56 billion in Obamacare spending for the expansion’s first 18 months. The money was meant to last until July, but it ran out in February.

Kasich’s Obamacare expansion cost $323 million in March — 84 percent greater than estimates revised just six months earlier.

Using monthly figures released by the Ohio Department of Medicaid, the Republican governor’s Obamacare expansion cost slightly more than $3 billion from January 2014 through March 2015.

Kasich’s Obamacare expansion is on track to cost more than $4 billion by the end of June.

With federal taxpayers on the hook for all benefit costs and Ohio facing a growing state share in 2017, Obamacare expansion may soon consume 10 percent of Ohio’s budget.

Governor Kasich rammed through the Medicaid expansion after the legislature declined to do so. In other words, placing his will above that of the people’s elected representatives. And what has his superior judgment brought the people? Costs far higher than expected. Right now, they’re spread across the backs of taxpayers in all 50 states. (Gee, thanks, Governor.) In a few years, however, the federal subsidies decrease and an increasing portion will be born solely by the taxpayers of each state. As the article points out, that could amount to 10 percent of Ohio’s budget, just for Medicaid. (And if the history of government entitlements is any indication, that figure is low.)

Massive cost overruns and a huge open-ended burden on state finances. Heck of a calling card for a spot on the Republican ticket, John.


Kasich for President? Er… No, thanks.

April 24, 2015
Kasich 2016?

Kasich 2016?

There’s something about the Ohio governor I just don’t like, and I think the words “sanctimony” and “arrogance” have something to do with it. In The Washington Examiner, Philip Klein explains why limited-government conservatives should say “no” to John Kasich:

A 2012 ruling by the U.S. Supreme Court made it easier for states to reject Obamacare’s costly expansion of Medicaid — as many governors prudently chose to do.

But in February 2013, despite campaigning on opposition to Obamacare, Kasich crumbled under pressure from hospital lobbyists who supported the measure, and endorsed the expansion. When his legislature opposed him, Kasich bypassed lawmakers and imposed the expansion through a separate panel — an example of executive overreach worthy of Obama.

Kasich cloaked his cynical move in the language of Christianity, and, just like a liberal demagogue, he portrayed those with principled objections to spending more taxpayer money on a failing program as being heartless.

“Why is that some people don’t get it?” Kasich asked rhetorically at an October 2013 event at the Cleveland Clinic, which lobbied the administration heavily for the expansion so that it could access a stream of money from federal taxpayers. “Is it because they’re hard-hearted or cold-hearted? It’s probably because they don’t understand the problem because they have never walked in somebody’s shoes.”

Ugh. That’s a cheap shot worthy of Obama, Reid, and Schumer. It couldn’t possibly be that one opposes the expansion of Medicaid because it represents a looming fiscal disaster for states that do enlarge the program. It couldn’t be because Medicaid has been shown to be no better than having no insurance at all, and that it increases the strain on emergency rooms. Nor could one reasonably object on principled limited-government, constitutional grounds, since the entire Obamacare project represents an anti-constitutional monstrosity.

Nope. It had to be because you’re a callous monster. But thank God John Kasich has the heart you lack, you Grinch.

There’s another problem, too. It’s that Kasich has, like Obama, shown the instincts of a tyrant. No, he’s not had anyone carted off to camps nor had himself crowned king, but his decision to expand Obamacare slapped in the face the principle that laws should be written by the people elected by The People to write them. In other words, the legislature. Article 2, section 1 of the Ohio Constitution reads, in part:

The legislative power of the state shall be vested in a general assembly consisting of a senate and house of representatives but the people reserve to themselves the power to propose to the general assembly laws and amendments to the constitution, and to adopt or reject the same at the polls on a referendum vote as hereinafter provided.

In other words, the power to write, amend, and repeal laws was granted by the people of Ohio to the legislature and reserved to themselves — none was granted to the governor. Yet, when the elected representatives of the people declined to expand Medicaid, Ohio’s chief executive –not “chief lawmaker”– forced his way around them to do it anyway. Like the old saying goes, it may have been legal, but it sure wasn’t right. That’s the “tyrannical instinct” I was talking about.

And if that gives you an uncomfortable feeling that reminds you of the shenanigans used to pass Obamacare, you’re not just imagining things. Having experienced enough of that under Obama, I don’t want to go through it again when “President Kasich” decides he knows best.

Thanks, Governor, but I’ll pass.


#Obamacare success! New Medicaid enrollee turned down by 96 doctors

April 9, 2014
"Train wreck"

“Train wreck”

One of the oft-stated goals of the Affordable Care Act was insuring the uninsured. For those who couldn’t afford insurance even with the new subsidies, states could expand their Medicaid offerings with (temporary) help from the federal government (i.e., taxation and borrowing). Great, right? Even if you don’t make enough to afford private insurance, you still get medical care, right?

Not if the doctor refuses to take Medicare:

“I’m sorry, we are no longer accepting that kind of insurance. I apologize for the confusion; Dr. [insert name] is only willing to see existing patients at this time.”

As a proud new beneficiary of the Affordable Health Care Act, I’d like to report that I am doctorless. Ninety-six. Ninety-six is the number of soul crushing rejections that greeted me as I attempted to find one. It’s the number of physicians whose secretaries feigned empathy while rehearsing the “I’m so sorry” line before curtly hanging up. You see, when the rush of the formerly uninsured came knocking, doctors in my New Jersey town began closing their doors and promptly telling insurance companies that they had no room for new patients.

My shiny, never used Horizon health card is as effective as a dollar bill during the Great Depression. In fact, an expert tells CNN, “I think of (Obamacare) as giving everyone an ATM card in a town where there are no ATM machines.” According to a study 33% of doctors are NOT accepting Medicaid. Here in Jersey, one has a dismal 40 percent chance of finding a doctor who accepts Medicaid – the lowest in the country.

That insurance or Medicaid card does one a whole lot of good when no one will accept it, doesn’t it?

This is one aspect of a broader access problem that’s going to get more and more attention as we get deeper into the Obamacare morass. In addition to a growing doctor shortage (something that Obamacare may make worse), and shrinking provider networks, the limited number of doctors who accept Medicaid will only get smaller, because the system underpays for their services, and yet under Obamacare is greatly increasing the number of patients. Noble sentiments aside, a medical practice is a business, and a physician or hospital can only afford to see so many money-losing patients before it’s no longer worth staying in business.

Call it another of Obamacare’s broken promises: the government promises you medical care, but what if the care-provider refuses to play?

Of course, one would-be Democratic lawmaker in Virginia has a solution for that: serfdom.

Via Jim Geraghty, who notes it’s even harder to find specialists who take Obamacare.

RELATED: Bobby Jindal has a better idea.

(Crossposted at Sister Toldjah)


ObamaCare’s impact on doctors

July 4, 2010

A video from the Heritage Foundation:

(via Big Government)