AFP Reacts to Medicaid Expansion in Governor’s Address
“Across the country, states that have expanded Medicaid have experienced major cost overruns that are busting state budgets,” says State Director Ben Lee
SIOUX FALLS, S.D. — Americans for Prosperity South Dakota released the following statement in response to Governor Daugaard’s budget address and Medicaid Expansion. The Governor’s FY17 budget would add $373 million dollars to our national debt and 55 new employees to the state payroll to expand Medicaid.
“We share the Governor’s concerns about Medicaid expansion and appreciate his past record of fiscal responsibility,” said Americans for Prosperity South Dakota State Director Ben Lee. “We’re still reviewing the details of the plan but we do know a few things: expansion hasn’t gone as planned in other states and taxpayers can’t afford to keep growing our unsustainable national debt.”
“Across the country, states that have expanded Medicaid have experienced major cost overruns that are busting state budgets. These cost overruns have forced states to make painful cuts to priorities like roads and schools or raise taxes. And we can’t forget that choosing to expand Medicaid will add $300 million to the national debt — that’s money our children and grandchildren will be forced to pay off years down the line. South Dakota can’t afford to make the same mistake.”
Across the country Medicaid Expansion states have seen costs surge out of control “Across the country, states that opted into Obamacare’s Medicaid expansion have seen the number of able-bodied adults on welfare skyrocket beyond expectations. In fact, after just one year of Obamacare expansion, several states have already seen more adults sign up for Medicaid welfare than they thought would ever sign up or even be eligible.” (The ObamaCare Expansion Enrollment Explosion, Foundation for Government Accountability, 4/20/15)
Government Accountability Office: Arkansas’ “Private Option” Medicaid Expansion plan $778 million over budget “GAO estimated that, by including these costs, the 3-year, nearly $4.0 billion spending limit that HHS approved for the state’s demonstration was approximately $778 million more than what the spending limit would have been if it was based on the state’s actual payment rates for services under the traditional Medicaid program,” the report said. (Medicaid Demonstrations: HHS’s Approval Process for Arkansas’s Medicaid Expansion Waiver Raises Cost Concerns, Government Accountability Office, 8/4/14)
With Medicaid Expansion in Colorado, one in five adults are now on Medicaid “Colorado decided to expand. That’s led the state to enroll about 450,000 people in the last two years. One in five Colorado residents is on Medicaid.” (In Colorado, More People Are Insured But Cost Remains An Issue,National Public Radio, 9/16/15)
Illinois’ Medicaid expansion ran $800 million over budget in the first year alone “Medicaid expansion in Ohio has run $1.5 billion over budget so far, Washington state has had to boost its biennial budget by $2.3 billion “solely due to higher-than-expected” expansion costs, and Illinois’ expansion ran $800 million over budget last year.” (Higher costs for Obamacare’s new Medicaid patients, CNBC, 6/13/15)
Kentucky’s program running $1.8 billion over budget “By the end of the first year, more than 375,000 able-bodied adults enrolled into ObamaCare expansion, roughly double the number the state thought would ever sign up. As a result, Kentucky budget officials now estimate Medicaid expansion will cost $1.8 billion more than projected in fiscal years 2014 and 2015.” (The ObamaCare Expansion Enrollment Explosion, Foundation for Government Accountability, 4/20/15)
Michigan faces budget shortfall of more than $100 million thanks to Medicaid Expansion“Michigan’s Medicaid program faces a budget shortfall this year of more than $100 million. That’s because a new tax on health insurance claims is not producing as much revenue as state officials expected.” (State lawmakers look to patch Medicaid shortfall, say long-term solution critical, Michigan Radio, 2/21/14)
Ohio $1.5 billion over budget for Medicaid Expansion program “In its first 18 months, Kasich’s Obamacare expansion enrolled 243,373 more people than projected and ran $1.5 billion over budget.” (Report: Three-fourths of Ohio Obamacare enrollees are on Medicaid, The Highland County Press, 9/16/15)
Washington State forced to increase state budget by $2.3 billion in order to compensate for unexpected Medicaid Expansion costs “Medicaid expansion in Ohio has run $1.5 billion over budget so far, Washington state has had to boost its biennial budget by $2.3 billion “solely due to higher-than-expected” expansion costs, and Illinois’ expansion ran $800 million over budget last year.” (Higher costs for Obamacare’s new Medicaid patients, CNBC, 6/13/15)
West Virginia enrollment 177% higher than expected “West Virginia has already boomed past the extra 93,000 people the state expected to enroll by 2020 under a Medicaid expansion plan ushered in by Gov. Earl Ray Tomblin in 2013.” (A look at the Medicaid expansion in West Virginia, Associated Press, 7/19/15)
Putting funding for roads, education, and the truly vulnerable at risk of being cut “With Medicaid expansion enrollment far exceeding projections, states that adopted the expansion will soon need to find additional funds to pay for the inevitable cost overruns. States will begin paying a share of Obamacare expansion costs in 2017, assuming the federal government even lives up to its funding promise that long…Obamacare’s perverse funding scheme encourages state budgeters to steal resources from seniors, children, pregnant women, and individuals with disabilities in order to free up funding for Medicaid expansion.” (The ObamaCare Expansion Enrollment Explosion, Foundation for Government Accountability, 4/20/15)
Hawks says she supports a national movement that involves progressive thinking to address higher education and student debt. She says in South Dakota that begins with a legislative resolution she plans to file ahead of January’s session start.