Obamacare To Destroy State Budgets in 2011

December 22, 2010
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Obamacare tries to achieve “universal” coverage by forcing the states to cover vastly more people under Medicaid. Medicaid happens to be one of the largest parts of state budgets, right after education. And this is what Obamacare will do to it over the next year:

And the stark numbers:

CMS projects that state and local spending on Medicaid will increase 41.4 percent between 2010 and 2011. No, that is not a typo.

Medicaid spending now represents on average about 21 percent of the typical state budget. If state Medicaid spending increases by 41 percent as projected by CMS, then by next year Medicaid could end up consuming nearly 30 percent of the average state budget. Medicaid would greatly exceed all other state priorities, including education, which tops state budgets at about 22 percent. In fact, state spending on education would experience certain cuts next year.

The good news: Maybe we can get the blue states – most of whom are already unable to pay their bills – to declare bankruptcy, and eviscerate (yes, I love that word!) the public sector unions!

11 Responses to Obamacare To Destroy State Budgets in 2011

  1. phineas gage on December 22, 2010 at 8:56 am
  2. The Trolls on December 22, 2010 at 9:04 am

    The Heritage Foundation? Could it be more biased?

    No. It could not be more biased.

  3. Dinocrat » Blog Archive » Bailout or no bailout? on December 22, 2010 at 9:55 am

    [...] of the new healthcare law passed by Congress says that state expenses are set to rise dramatically (57% for Texas): Medicaid is the second largest item on the average state budget at 21% (education is first at [...]

  4. anonymous un-RINO on December 22, 2010 at 11:27 am

    States will soon be dropping out of Medicaid. It’s that simple. Texas first, presumably, then others will follow.

    Then, as it becomes clear that Medicaid is a pure welfare program, varying by state, with some states having better welfare payoffs than others, welfare recipients will migrate to those better paying states, just like in previous decades with welfare payments.

    Here in Michigan, we were giving welfare checks to single, able-bodied adults until the early 90′s. Other states didn’t, so the welfare recipients migrated here and stayed on the dole, until we cut them off and made them work (sorta).

    Too bad for Obambi, but mandates on this won’t work. He’s gotta find the cash to pay for it, if he wants it. Otherwise, they’ll give him the one-fingered salute, and there’s nothing he and Pelosi can do about it. Sue away, pogues. You’ll lose. ObamaCare isn’t in the Constitution.

  5. dom weselny on March 22, 2011 at 11:13 pm

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  6. Diane Pearce Loves Obama on March 24, 2011 at 10:58 am

    Just wanted to say that I am eployed at a large Pharmaceutical corporation in Clayton NC and I endroce Barack Obama with all my heart. I encourage all my friends and colleagues to re-elect Obama in 2012!! I LOVE YOU OBAMA

    • Claude Dickerson on October 30, 2012 at 9:38 am

      Well Diane, perhaps you can help him get a job at your company after November, 2012. He’s going to need one!

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