The Baucus Bill Cost To States And Working Families

Dennis Smith / October 02, 2009

After watching the Senate Finance Committee work its will on health care reform, it is clear that the final stretch will have little to do with good policy and lots to do with cutting special deals with drug companies, favorite states, and the like. The debate is a jarring reminder that the current Congress views health care as a giant pie (indeed 16-17 percent of our entire economy). Of course, government does not make the pie, it merely cuts the pieces.

The folks back home still want an answer to the question that matters most to them—“how will this affect me and my family?” Families understand how much they make every month, not necessarily where they stack up on the government poverty line. The reality is Congress is making (more) arbitrary decisions based on budget implications. If you make $10 a month too little, you go to Medicaid where it will be cheaper to serve you because of government price controls on providers. Good for government budget, good luck to you to find a doctor or dentist. States that are already broke are faced with the burden of additional costs through mandatory expansions and benefit mandates. (more…)