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NY’s medicaid in crisis, burying the state; on Obamacare, now repealed in the house, all things related, and (except House GOP members)NY State Gov still absent in the fight

January 19, 2011
HEARTLAND INSTITUTE Consumer Power Report # 255January 18, 2011
The recent letter from 33 governors to President Barack Obama and Health and Human Services Secretary Kathleen Sebelius is notable not merely for its frank language–it claims “The effect of the federal requirements is unconscionable; the federal requirements force governors to cut other critical state programs, such as education, in order to fund a ‘one-size-fits-all’ approach to Medicaid,” and rightly so–but also for the broader questions involved in the problems of the Medicaid program.
Medicaid is, as you probably know, a disaster. As Avik Roy has pointed out in the past, it is important to note that it is a humanitarian disaster first, before you even get into the budgeting damage the program has wrought. It’s a program with terrible results not just for the bottom line but for the people who use it–a safety net which more often functions as a Medicaid ghetto, trapping a disproportionate number of members of minority communities in a system that is unlikely to heal or care for them properly.

As a study by the University of Virginia found earlier this year, being a Medicaid patient correlates with the longest adjusted length of stay and the largest total costs. Medicaid patients who require surgery are 13 percent more likely to die than those who are uninsured, and they are 97 percent more likely to die than patients with private insurance.

Much of this terrible picture has to do with the population in question, and an unwillingness to seek preventive care when it is needed. Pair the low quality of care Medicaid patients receive with the lack of an ability to see medical professionals in a timely manner, and this looks like a program ill-prepared to handle the 16 to 18 million Americans who will be jammed into its system under President Obama’s law. And to add insult to injury, Medicaid is already the largest budget expense for the states, accounting for nearly 22 percent of total spending in FY 2010, and as you’ll see in the stories linked below, it stands to increase dramatically in the coming years.

Something has to change, and change soon–otherwise, states will soon be bankrupted by a system with dramatic levels of fraud that provides unacceptable health care to the neediest members of society.

– Benjamin Domenech

(At present, 1/2 the states in the country have either joined together, or are pusuing on their own, legal challenges to Obamacare. Of the remaining states that are not, New York continues to be one of them, and this is despite the fact that NY will suffer the negative affects of Obamacare, far worse than any of the others, to the tune of billions of dollars in costs. It is mind boggling that in light of the dire financial outlook, along with violations of it’s citizens by the Fed with respect to personal mandates, tax implications, among other issues, that NY is still absent in stepping up to protect sad citizens.)


  • Final Notice: Medicaid in Crisis
  • How Medicaid Is Burying the Empire State


 The Cato Institute’s Jagadeesh Gokhale presented a report recently, prepared at the behest of the Texas Public Policy Foundation, which outlines the true budgetary impact on the states of Obama’s law and the expected increase in Medicaid enrollment. He also has a working paper which includes Florida, Illinois, California, and New York in his calculations.

The numbers Gokhale finds–basing his calculations from Medicaid enrollment expectations, population growth, and expectations regarding federal matching rates–show that the 10-year post-2014 increased Medicaid costs represent as much as a 39 percent cost increase for Illinois, a 36.3 percent increase for New York, a 50 percent increase for Florida, and a 59.5 percent increase for Texas. California has a relatively modest 32.1 percent cost increase, only because so many of its citizens are already on Medicaid–Gokhale finds they ought to expect a 22.6 percent increase in enrollment over pre-Obamacare expectations by 2030, as opposed to Florida’s 57.6 percent increase.

These percentages symbolize billions of dollars in new spending for the states. I encourage you to contact Gokhale if you wish for him to run the numbers for your state to gain a better picture of how much pain your budgets are about to bear.


 Avik Roy cites a report from Democratic New York Lt. Gov. Richard Ravitch in this extensive piece on Medicaid’s disastrous effect in New York.

“The State of New York is a poster child for how decades of irresponsible management of Medicaid can drive a state treasury into a ditch. … [N]early one-quarter of all New York state residents–4.5 million people–are on Medicaid. In the 2010 fiscal year, local, state, and federal parties spent more than $50 billion on Medicaid in New York, far more than any other state in the union, and nearly 40 percent of New York’s 2010 budget of $132 billion. New York spends more on Medicaid per capita than any state–double that of neighboring New Jersey and Connecticut, and 2.3 times that of California, the second-largest state in total Medicaid expenditures.”

American SolutionsTomorrow, the House of Representatives will vote on the repeal of ObamaCare. We urge you to look up the phone number for your Congressman right now by visiting and ask your member to vote for repeal.Just today, over 200 respected economists signed a letter to the House and Senate leadership urging them to repeal Obamacare. In the letter, the economists warned that at a time when 9.4% of Americans are out of work, the failure to repeal this law will mean even slower job growth, rising healthcare costs, and a dramatic increase in already out-of-control government spending.While the House vote is an important first step to defeating this job-killing legislation, it is only the beginning of a long fight, which will continue in the Democratic-controlled Senate. Stay tuned as we continue to battle this massive government takeover.

Dan Varroney, Chief Operating Officer


CMPI ADVANCE – Daily Update on the Dangers of Government-Run Health Care 

Victory in the House!

On Wednesday House Republicans voted to overturn President Obama’s health care overhaul. Lawmakers passed the bill 245-189, with three Democrats (Reps. Mike Ross, Dan Boren and Mike McIntyre) joining in the effort.  Republicans are determined to break the law, if not through repeal then by measures that defund its provisions.  “The Congress can do better in terms of replacing Obamacare with common-sense reforms that will bring down the cost of health insurance and expand access for more Americans,” House Speaker John Boehner said yesterday.  The American people spoke out during the midterms, and Republicans in Congress listened.  Let’s hope they get the chance to do better soon. (Note that the vote margin to repeal was larger than the original vote margin to enact!) Fox News

Bruce Josten, executive vice president of the U.S. Chamber of Commerce, said Wednesday evenings 245-189 House repeal vote ‘sent an important message to the American people that Congress is listening to their call for health care reform that truly lowers cost and improves quality without irreparably damaging our economy and inhibiting job creation.’ The health care reform law was ‘fatally flawed,’ he said, because it didn’t reduce health care costs. ‘It imposes mandates and penalties on businesses that discourage job growth, increases taxes and burdens on small businesses, creates dangerous new entitlements while cutting Medicare, and creates new plan requirements that will increase costs,’ Josten said. ‘The virtual inability to ‘grandfather’ current plans is but one example of the problems created by the law that are causing angst among employers,’ he said.  more…

Here’s Nothing New: Democrats Lying to Keep ObamaCare Afloat

During the health care vote yesterday, Democrats pulled all the stops to try and convince lawmakers to not repeal ObamaCare.  This included incredible exaggerations and distortions of facts.  In other words, they continued to do what we’ve seen them do throughout the past few months.  As of yesterday, the Obama administration said that if the new entitlement (not scheduled to be enacted until 2014) is repealed, as many as 129 million Americans will lose their health insurance today.  According to Health and Human Services, somewhere between 19% and 50% of the U.S. population under 65 has a preexisting condition, and have been “freed from discrimination” by ObamaCare. This would be great, except most people are insured by their employers, which don’t do health background checks before handing out insurance anyway.  As for the “high-risk pools” that are already up and running? They’re supposed to be covering over 300,000 people by now, but only 10,000 have signed up.  Looks like we can look forward to many more such exaggerations as the repeal debate continues.  Wall Street Journal

More than Half the Nation is Fighting ObamaCare

Pam Bondi, Florida’s Attorney General, appeared on Fox News yesterday to announce that over half the nation has joined in the fight against ObamaCare taking place in the Florida district court.  As of yesterday, six new states have recently been added. These states are Kansas, Ohio, Wisconsin, Maine, Iowa and Wyoming. This brings the total to 26 states that represent a variety of different political ideologies and backgrounds.  According to Bondi, the lawsuit signifies that “our freedom and our rights have trumped politics and policy.”  If ObamaCare isn’t defeated in Congress, states will fight to make sure it will be defeated by the Courts.  To view a video clip of the interview, visit Fox News: Fox News

Why Expand an Already Broken System??

Roughly half of the anticipated gains in insurance coverage under ObamaCare come from the expansion of Medicaid. Too bad the Medicaid system was already broken and increasing it by a third will only make it less affordable.  As a result, taxpayers will see a substantial increase in costs.  The Congressional Budget Office (CBO) estimates that the Medicaid expansion will increase government spending on the program by $75 billion to $100 billion  annually.  Where is that money going to come from? You guessed it. Our pockets. On top of that, there will be a dramatic increase of people dependent on the government paying their health care bills.  Most estimates say the number will increase by up to 20 million individuals.  These numbers prove that ObamaCare is just another way for the government to take more taxpayer dollars and expand its overreach far beyond its constitutional limit.  The Heritage Foundation

Special ReportNeeded: An Alfred Kahn for Health Care Reform

By Andrew B. Wilson

He deregulated airline travel. Who will deregulate health insurance?

Congress Should Have Addressed Medicare Rather Than Pass “ObamaCare”
By Matt Towery

Repeal Through Reconciliation

by Philip Klein

LAURA INGRAM: Hour 2: GOP elite: ObamaCare monstrocity, repeal and replace.

Betsy McCaughey, chairman and founder of the Committee to Reduce Infectious Deaths and former Lieutenant Governor of New York, talks with Laura about the monstrosity that is ObamaCare and the common sense reforms we do need. Repeal and replace!

Senate Dems OK to Repeal Part of Health Law

Thursday, 20 Jan 2011 01:14 PM

WASHINGTON (AP) — Senate Democrats don’t plan to join the House in voting to repeal the massive new health care law, but they do want to eliminate a small portion of the law that is unrelated to health care.

Three Senate Democrats wrote House Speaker John Boehner Thursday, asking him to pass a bill repealing a new tax filing requirement for businesses. Starting in 2012, nearly 40 million U.S. businesses would have to file tax forms for every vendor that sells them more than $600 in goods.

The provision is expected to raise $219 billion over the next decade, to help pay for the health care law. Senators Ben Nelson of Nebraska, Maria Cantwell of Washington and Amy Klobuchar of Minnesota, said the Senate would act quickly if the House repeals the provision.


  • Idaho GOP Ready to Nullify Obamacare
  • House GOP Reopens Healthcare Abortion Debate


       Not So Fast, MSM: The Repeal of ObamaCare May Not Be Dead on Arrival in the Senate
    Alexis Garcia reports from Washington DC and finds out why the Washington Examiner’s Horace Cooper believes there’s a chance that the legislation could pass the Senate.


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