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April 9th, 2012 10:59 am
Medicaid Bankrupting States

Along with reformist former state official Bradley Byrne, I explained yesterday at the Mobile Press-Register how Medicaid is taking over the entire Alabama General Fund budget, and how ObamaCare makes it worse. This might have some bearing, tangentially, to the Supreme Court case on ObamaCare (the part argued last, about states being commandeered into ObamaCare Medicaid expansions).

Federal and state governments share Medicaid costs, but Obamacare by design will add millions nationwide to state Medicaid rolls while picking up the added costs only in the short term….

Before the $81 million error was discovered and before Gov. Bentley was forced to prorate the state’s budget (making across-the-board cuts due to revenue shortfalls), and even without full implementation of Obamacare, the state General Fund’s budget for Medicaid had doubled in just two years. To put this into perspective: During this two-year period, our court system was cut by a third, our criminal prosecutors’ offices by 14 percent, our Forestry Commission by 17 percent and our economic development by 5 percent. Medicaid went from consuming 20 percent of our General Fund budget two years ago to 36.5 percent this year. It is on track to consume the entire General Fund by decade’s end.

This is a big deal. And Alabama is hardly unique. It adds practical weight to the states’ arguments that they are being coerced into something they can’t afford.

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