Government Control of Health Care : Financial Disaster for States

More financial problems for the states coming from the federal government in the form of demands that the states pay a higher rate for the federal mandates. This can not be done as most states are headed for bankruptcy now let alone have the burden of carrying thousands more people on the Medicaid and Medicare roles.

You be the judge - are our Representatives doing this on purpose? Common sense says anyone with even a basic knowledge of finance would know one can not demand more from nothing.

HEALTH CARE REFORM AND THE STATES

There's somewhat of a revolt brewing among the states over the pending health care bill. Last week, California Gov. Arnold Schwarzenegger sharply criticized the legislation for the financial burdens it poses on his state -- and he's not alone, says the U.S. Chamber of Commerce.

Time magazine reports there are four reasons why many states aren't keen on the bill, all involving how it will make the states' financial conditions worse:

Costs -- states will be forced to pay for part of the expansion of Medicaid.

Compliance -- states will be hard-pressed to implement and enforce new regulations.

Also:

Insurance Exchanges -- states, at least under the Senate version, will essentially be responsible for running them, a huge and complex task.

Federal Aid -- it will be uneven at best, depending on how much each state has expanded Medicaid on their own; those who "did the right thing" by making more citizens eligible for the program will be "punished" by receiving less aid.

Source: Kevin Ganster, "Health Care Reform and the States," U.S. Chamber of Commerce, January 8, 2010; and Kate Pickert and Karen Tumulty, "What Health Care Reform Means for the States," Time, January 8, 2010.