Reconciliation Bill Increases ObamaCare Medicaid Costs for Twenty Eight States

The U.S. Senate is currently debating H.R. 4872, which amends the Obamacare bill passed by the House Sunday evening and signed into law by the President on Tuesday. This second piece of legislation is advertised as necessary to “fix” problems with the basic Obamacare legislation — such as by deleting the notorious “Cornhusker Kickback” and by altering the timing and scope of the new penalty tax on “high-cost” health insurance plans.

However, other parts of H.R. 4872 actually make the original bill worse — for example, the provision that would increase the separate, new premium tax on commercial health insurance coverage and the one that expands the new tax on medical devices.

Yet another provision would change the federal Medicaid funding formula such that Obamacare will cost taxpayers in 28 states and the District of Columbia even more money. That means that 56 senators will have yet another opportunity to once more vote against the interests of their constituents back home by approving H.R. 4872.

The Obamacare legislation (now designated Public Law 111-148) will cover the uninsured mainly by dumping 20 million of them into the Federal/State Medicaid program. While the federal government will pick up most of the extra cost, state taxpayers will still be left holding the bag for the rest of the expense.

As the table below shows, H.R. 4872 would change the Medicaid funding formula in Obamacare such that taxpayers in 22 states will pay less — but taxpayers in 28 states will pay more — of those additional Medicaid costs.

So, when voting on the Obamacare “fix” bill, U.S. Senators will have yet another opportunity to “fix” their constituents a bit more. Doubtless, their constituents will be grateful.