|
Medicaid Spending Set to Crowd Out Education And Other Gov't Functions
New Study Outlines What Growth in Medicaid Spending Under ObamaCare Means For Kansans
|
June 27, 2011 - Wichita, KS - Full implementation of federal health care 'reform', commonly referred to as ObamaCare, would cost an extra $4.7 billion from the Kansas General Fund budget between 2014 and 2023 - the first ten year period when all of the law's provisions are in effect. Total General Fund spending on Medicaid over that ten-year period is projected to be $20.8 billion, which is 29 percent more than would be spent without ObamaCare. Jagadeesh Gokhale, Ph.D., a member of the Social Security Advisory Board and former senior economist at the Federal Reserve Bank of Cleveland, writes in a new paper from Kansas Policy Institute that the mandates will balloon Kansas spending and crowd out the resources available for other government functions such as education and transportation.
"If Kansas continues to operate its Medicaid program as in past years and implements PPACA, spending on Medicaid will quadruple, going from $713 million in 2010 to $2.8 billion in 2023. Kansas historical budget share trends suggest that large and growing budget pressure from Medicaid expansion under PPACA would compel reductions in education, infrastructure and other primary functions," writes Gokhale. PPACA refers to the health care law and reflects the formal name of the bill, "Patient Protection and Affordable Care Act."
Medicaid spending in Kansas is only exceeded by education and covered 355,000 people in 2008. In that same year, the Kansas Division of the Budget says Medicaid accounted for 14.3 percent of state general fund expenditures and $871 million. Medicaid spending declined in 2009 and 2010 due to a temporary increase, under the 'stimulus' bill, in the share covered by the federal government. Gokhale arrives at the projections mentioned above by comparing state expenditures both with and without the mandates in PPACA. The chart below shows projected Kansas Medicaid spending under different scenarios.
"Kansas faces budget pressures from all directions. The real KPERS deficit is likely $14 billion, some Kansas school boards are suing taxpayers for more money, even though they have hundreds of millions in unspent aid left over from prior years." said KPI president Dave Trabert. "And now the feds expect us to spend nearly $5 billion more on Medicaid? Kansas already has a tax burden that is costing jobs. Without serious reform in these areas, I don't see how Kansas can provide an effective education to Kansas kids, maintain our roads, or help the neediest in our communities."
Only time will tell if PPACA lives beyond congressional and legal challenges to be fully implemented. Under Attorney General Derrick Schmidt, Kansas is one of the states saying the federal government violated the U.S. Constitution by implementing the law - a federal court judge in Florida agreed with that contention earlier this year and ruled PPACA unconstitutional. However, while the federal government runs through the appeals process and attempts to force implementation of ObamaCare, states must still be prepared. Gokhale writes that, "Kansas lawmakers should vigorously oppose the implementation of PPACA's health exchanges and other administrative and operational infrastructure." |
|
# # #
Kansas Policy Institute is an independent think-tank that advocates for free market solutions and the protection of personal freedom for all Kansans. Our work centers on state and local economic policy with primary emphasis on education, fiscal policy and health care. We empower citizens, legislators and other government officials with objective research and creative ideas to promote a low-tax, pro-growth environment that preserves the ability of governments to provide high quality services. To speak with Kansas Policy Institute, please contact James Franko (316) 634-0218.
|
