Pebble Beach, CA Affordable Care Act Ruling By Supreme Court Leaves More Questions Than Answers
by Richard Kuehn on 07/01/12
The
U. S. Supreme Court has stricken a portion of President Barack Obama's health
care reform legislation (the Affordable Care Act) which requires states to
adopt an expansion of the Medi-Cal program (called Medicaid in other states)
which would give 17 million of the poorest American's insurance. Despite the fact that the Federal government
would pay for the full cost of this between 2014 and 2016, many states are
against it. The funding from the
government would gradually decline to 90% by 2020, and cash-strapped states say
they can't absorb the other 10%. This
calls into question the whole issue of health care reform, which was supposed
to require most American's without insurance to buy it, with those who couldn't
afford it being added to Medi-Cal and Medicaid.
But what happens when you can't afford the premiums? This question has yet to be answered, and is
likely to be in the news in the months leading up to the November
elections. Although the Governor of
California, Jerry Brown, has yet to announce a position on the issue, there has
not been one Democrat to come out against it so the odds are in favor of
California accepting the Federal aid.
About a half a dozen Republican-led states have already said they will
reject the Federal aid or had serious doubts about accepting it, but this
position will be interesting to watch as we get closer to the elections. The legislation was written assuming that
wealthier Americans would get a tax credit to subsidize buying private insurance
and the poorer ones would go into the Medi-Cal/Medicaid programs. In the states which reject the Federal aid,
the poorest Americans would qualify neither for the tax credit nor
Medi-Cal/Medicaid. Some Republicans are
running with the idea that they will be able to repeal the legislation in total
if they take control of the Senate, but it's likely to be a close race and this
is anything but a sure bet. In the
meantime, Republicans are likely to treat the issue as another unfair tax
imposed by President Obama. "As I
have said repeatedly, if this unfunded Medicaid expansion is implemented, state
aid to education and funding for the University of Nebraska will be cut or
taxes will be increased," Governor Dave Heinman (Republican, Nebraska)
told the New York Times. Despite the
definitive ruling by the Supreme Court, the issue of how health care reform will
be enacted remains in limbo.











