The Baucus bill greatly increases the Medicaid burden on states. But don’t worry if you live in Nevada. Your Senator is looking out for you. From the New York Times, Majority Leader Protects Home State
WASHINGTON — The Senate majority leader, Harry Reid of Nevada, has secured a special deal protecting his state against the costs of expanding Medicaid under one of the major health care bills moving through Congress…
…Now Mr. Baucus has modified the bill to spare Nevada and three other states, and Mr. Reid, who faces a potentially difficult race for re-election next year, is taking credit for getting a “major increase” in federal money for his state.
The Senate bill, like a companion measure in the House, would expand Medicaid to cover childless adults, parents and other people with incomes less than 133 percent of the poverty level, or $29,327 for a family of four. The federal government would pay most of the new costs — anywhere from 77 percent to 95 percent, with a higher share in poorer states, in the first five years.
Under Mr. Baucus’s original proposal, the federal government would have paid 87 percent of the new costs in Nevada. Under the modified version, the federal government would pay 100 percent of the new costs for the first five years. Severe financial problems have prompted Nevada and other states to cut spending and furlough workers, and some states have even considered releasing prison inmates to save money.
…The changes came at the expense of other states, including California, Florida and Illinois, which would see significant increases in state Medicaid spending under the new formula…
It’s not just the Baucus bill that will impose huge unfunded mandates on the states:
…All the major health care bills moving through Congress would expand Medicaid, adding perhaps 11 million people to the rolls, the Congressional Budget Office says…
More at the link.
The Foundry asks, “If Obamacare is so great…why does Nevada need protection from it?” Good question.
Tags: Baucus, Harry Reid, Healthcare Reform, Medicare, Nevada, Senate