Obamacare: Who pays?

Kevin Drum at Mother Jones passes along a study by Kaiser Family Foundation that shows that states need not worry that Obamacare will stick them with a huge Medicaid bill:

Bottom line: the federal government is paying more than 95% of the cost of the Medicaid expansion that’s included in the healthcare reform bill. In some states the federal share is even higher. Total state spending on Medicaid will go up only 1.4%, a grand total of about $4 billion per year to cover more than 11 million people. What’s more, it might be even better than that: as Holahan says, states might find that in the end they come out in the black on overall healthcare costs since their spending on care for the uninsured will go down.

The Kansas study I linked to yesterday tells a similar story, as the chart shows. Kansas’s spending goes up a little ($2.2 million), employer spending comes down a lot, and the big burden falls on the federal government.

This isn’t to say that the coverage is free, because obviously the federal government is raising taxes to cover the cost. But it does say that some states are pressing the panic button a bit soon.

Kaiser’s study has state-by-state results and can be found here.

Relax, boys, it's on the house (almost).

Advertisements
Tagged

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: