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National Health Care Could Bankrupt Pennsylvania
The US Senate health care bill includes a mandate to increase the cut off level for Medicaid eligibility. This increased cut off for Medicaid will increase costs for Pennsylvania and 38 other states with eligibility cut offs below the federal legislation.
Pennsylvania will be the second hardest his state, behind only Texas, with an estimated $1.5 billion in additional spending. Increased taxes due to the increase in Medicaid eligibility could lead to states going bankrupt.
The costs to the state are in addition to federal costs–studies by various groups have concluded that various congressional plans would increase federal spending – even after assumed saving by cutting Medicare “waste” – from $114 billion to $750 billion over the next decade.
Furthermore private health insurance premiums would increase. A Blue Cross Blue Shield report finds that premiums will be higher than the CBO previously estimated – premiums for individuals and families are likely to go up 54%, and small business will have to fork out 20% more than they had previously.
For more on the costs to Pennsylvanians check out our report, Prognosis for National Heath Insurance: A Pennsylvania Perspective.