Mich. 'commandeered' as agent of Obama's policies

Wednesday, February 13, 2013
 | 
Chris Woodward (OneNewsNow.com)

In order to believe Michigan will come out ahead after expanding Medicaid, a legislative analyst says one has to accept some fairly unrealistic assumptions.

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 Medicaid.

McHugh, Jack (Mackinac Center for Public Policy)"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 Public Policy.

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."

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