Freedom Line Blog

After years of rebuffing calls to participate in ObamaCare’s Medicaid expansion, Pennsylvania Republican Governor Tom Corbett is changing his mind.

Sort of.

While the announcement comes as a bit of a surprise, it doesn’t appear to be a total loss for fiscal conservatives. (Others may disagree, of course.)

According to the terms of the agreement between Gov. Corbett’s office and the Centers for Medicare and Medicaid, Pennsylvania won’t simply be expanding its Medicaid program. Instead, it will use the extra dollars made available under ObamaCare to pay for (i.e. subsidize) private health insurance plans for newly eligible state Medicaid beneficiaries.

The agreement stipulates that Corbett’s alternative is being allowed as a five-year “demonstration project,” meaning that its future is not assured. Much will depend on how the project’s measurements are defined, if the reforms Corbett supports are to survive.

For now, Pennsylvania joins the ranks of Indiana, Arkansas and Iowa as states that are attempting to use ObamaCare’s Medicaid expansion to decrease their uninsured population – without, of course, breaking the bank.

It’s hard to see how that will happen, but we now have at least four states offering themselves as very costly social science experiments. It should be interesting to see what the results will show.

Pennsylvania Republican Governor Tom Corbett may be wavering on his refusal to expand Medicaid under ObamaCare’s bait-and-switch funding scheme.

I don’t envy him.  He’s surrounded by states like Ohio and New Jersey, whose GOP governors opted to indulge the fantasy that they can accept the federal government’s promise of full funding at face value.

To his credit, Corbett isn’t allowing himself to act like there are no costs associated with agreeing to so-called “free” Medicaid expansion for the next three years.

Here’s some refreshing honesty from Corbett’s spokeswoman Christine Cronkright:

The Corbett administration has estimated that participating in the Medicaid expansion that would add 800,000 people to medical assistance would cost Pennsylvania $1 billion through 2014-15 and a total of $4.1 billion. Advocates maintain that the Medicaid expansion would pay the way for $43 billion in federal contributions, beginning with three years in which the federal government would pay 100 percent of the expansion.

“Regardless of the federal government’s claims, the presumption that they will cover 100 percent of the costs of full expansion is simply not true. Regardless of any other costs under the (Affordable Care Act) that we’d have to bear, there are still IT and staffing costs, costs for additional clients coming into the system that may have been eligible before, and costs for those we believe will drop employer-based coverage,” Cronkright said.

So it turns out “free” really means $1-4 billion.

The simple truth about ObamaCare’s Medicaid expansion is that it establishes a one-way street toward greater federal intervention in every individual’s health care decisions. Democrats know this, and are using the “free” money trope to lure weak-willed Republicans into a federally-dominated system from which a state will not be able to extract itself.

GOP governors who agree to expansion and believe that they will have the political support to simply cut off access to Medicaid when the feds pull back funding are deluding themselves. Besides, what kind of leadership is it to support welfare expansion on the condition that someone else pays for it with their debt-laden credit card?

So far, Governor Corbett is standing firm in the face of tremendous opposition to fiscal sanity.  Let’s hope he continues.

The Cato Institute came out this week with its Fiscal Policy Report Card on America’s Governors and the results are very good for Tea Partiers. The nation’s top five chief executives in terms of fiscal stewardship are virtually all proud limited government advocates who have followed through on their promises of reining in government:

1 (tie) — Sam Brownback (R-Kansas); Rick Scott (R-Florida)

3 (tie) — Paul LePage (R-Maine); Tom Corbett (R-Pennsylvania)

5 (3-way tie) — Bobby Jindal (R-Louisiana); Jack Dalrymple (R-North Dakota); John Lynch (D-New Hampshire)

Lynch deserves some credit for being the sole Democrat to crack the top of the list, but not nearly as much as the Republicans who swept to huge majorities in the Granite State’s legislature and forced the governor to abide by New Hampshire’s “live free or die” ethos.

And the nation’s worst fiscal leaders? Is it any surprise that it’s a cadre of blue state liberals?:

46. Christine Gregoire (D-Washington)

47. Neil Abercrombie (D-Hawaii)

48. Mark Dayton (D-Minnesota)

49. Dan Malloy (D-Connecticut)

50, Pat Quinn (D-Illinois)

The full report is here.