On the recordJanuary 24, 2011
Most States, including my own State of Pennsylvania, are facing significant budget problems this fiscal year. The fiscal situation in some States eerily resembles Greece and Ireland. Unfortunately, the Federal Government is adding fuel to the fire with new Medicaid mandates that could cost the States billions of dollars. ObamaCare burdens the States in two ways. First, it requires them to enroll millions more beneficiaries. While the Federal Government will at first pay for the benefits of these new enrollees, the States will gradually have to start picking up the tab. Second, the Federal Government will only help cover the cost of benefits, not the administrative costs associated with all these new enrollees. Since some States will be forced to nearly double their Medicaid rolls, this will certainly hit their budgets hard. We cannot forget that 49 of 50 States are required to balance their budgets every year. They will face the grim choice of discontinuing their Medicaid program, raising taxes, or slashing other essential government services. We have talked a lot about ObamaCare bankrupting the Federal Government, but we can't forget that it could drive States over the cliff at the same time.
