Not Everyone Wants State Benefits from Obama's Health Law

Author: Sam Peters
Published: November 26, 2012 at 7:13 pm

There was a bit if a mixed reaction from states regarding President Obama's new health care law, according to a recent nonpartisan analysis. According to Washington, states are projected to receive $9 in federal money for every $1 they spend in supporting low-income residents.

The new Medicaid law has been created to support another additional 20 million low-income residents over the span from 2013 to 2022. According to a joint report form the Kaiser Family Foundation and the Urban Institute, the law will cost roughly $1 trillion, but states are only expected to pay just $76 billion of that, around 7 percent. The federal government and supporting programs will pay the remaining $952 billion.

However, there are a number of states who are strongly opposing this measure. Thanks to a recent decision by the Supreme Court passed just this past summer, state governors are allowed to reject Obama's proposed Medicaid deal. Governors Rick Perry of Texas, Nikki Haley of South Carolina, and Bobby Jindal of  Louisiana are the first to reject the law, and many more states are still on the fence regarding the measure.

The opposing states claim the law will add unacceptable financial pressure to an already-struggling budget. With the plethora of new programs in the workplace like employee recognition programs and healthcare mandates, new programs in the school system like increased funding for teacher salary and school supplies, and several other areas like the home, infrastructure, and the environment, states are already under a lot of financial pressure.

Still, the main effects of this Medicaid law and the greater parts of Obama's healthcare plan as a whole will take effect in 2014, when most Americans will be required by law to carry health insurance or pay a fine. This is projected to hit many middle class workers especially hard, who are surviving paycheck-to-paycheck as it is. Many companies will be faced with the road of complete budget and employee restructuring, dropping programs like O.C. Tanner rewards programs for meeting state-mandated healthcare and insurance requirements.

Continued on the next page

About this article

Article Tags

Share: Bookmark and Share