If it is allowed to be implemented, Obamacare will eventually do deep and irreparable harm to our nation’s budget deficit. But while Obamacare is more of a long-term threat to fiscal health at the federal level, it is a clear and present danger to the states. Of the 34 million Americans who gain health insurance through Obamacare, over half (18 million) will receive it through Medicaid.
While Obamacare will pay for all of the benefit expansion for the first three years of the law, and 90% of it after that, Obamacare never pays for any of the state administrative costs for adding those 18 million Americans to their welfare rolls. That amounts to billions in unfunded federal mandates for states to absorb. That is why 33 Republican governors signed a letter to the White House and Congress making an emphatic appeal that Obamacare’s Medicaid provisions be repealed.
It is also why the newly elected governors of Ohio, Oklahoma, Maine, and Wisconsin have all decided to sue the Obama administration in hopes of stopping Obamacare. Specifically, Gov. Mary Fallin of Oklahoma has announced that the Sooner State will pursue its own case against the law, while Govs. John Kasich (R) and Scott Walker (R) (of Ohio and Wisconsin respectively) will add their states to Florida’s multi-state suit. And yesterday, newly sworn-in state Attorney General William Schneider announced Maine would also join the the Florida litigation. That brings the number of states on the Florida suit to 23 and the total number of states suing to stop Obamacare (which includes Virginia and Oklahoma) to 25.