In order to believe Michigan will come out ahead after expanding
Medicaid, a legislative analyst says one has to accept some fairly
Michigan Governor Rick Snyder (R) backed an expansion of
Medicaid last week for the sixth time. He claims the
state's higher Medicaid cost would be outweighed by the large
amount of federal money Michigan would receive by expanding
"The decision is being treated like an
arithmetic problem, in which the state will save money if its share
of the costs of expanding Medicaid, times the number of new
individuals that are covered by the program, times the cost per
individual is less than the amount that the state currently spends
providing healthcare services -- mostly mental health services --
to individuals that are not covered by Medicaid," explains Jack
McHugh, senior legislative analyst at the Michigan-based Mackinac Center for
He adds that in the year 2020, states will be responsible for
ten percent of the cost of expansion.
McHugh also warns that President Obama's last two budget
recommendations had states paying a bigger share. And though those
budgets were not approved, the analyst affirms it shows that this
is in the president's playbook.
"States have two opportunities to push back against ObamaCare,"
he explains. "Refusing to create an exchange, which really is a
'Department of ObamaCare subsidy administration and eligibility
determination,' that was the first opportunity. The second
opportunity is the Medicaid expansion."
The Mackinac Center spokesman concludes that the federal
government is essentially seeking to "commandeer states into being
mere agents of its policies."