Health Care Reform Will Save SD Budget… in 2014

Posted: Tuesday, December 28, 2010 at 7:31 am
By: Cory Allen Heidelberger
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South Dakota’s budget crunch is coming in part because of increased enrollment and costs in Medicaid. It’s funny, then, that South Dakota is trying to block one way to fix that fiscal problem: the Patient Protection and Affordable Care Act. As Matthew Blake at Understanding Government reminds us, come 2014, Washington will pay 100% of Medicaid for folks earnign less than 133% of the poverty level. States resume paying 10% of that share in 2019, but that’s still a healthy break from the 40-50% share states currently shoulder for all patients.

Blake points to John Bouman’s summary of three studies that say states will enjoy significant savings thanks to the PPACA:

  1. The Urban Institute calculates increased costs and savings and finds in the worst case, the states save $40.6 billion from 2014 to 2019. In the best case, the states save $131.9 billion.
  2. The White House Council of Economic Advisers looked at sixteen states last year (not South Dakota—darn!) and estimated nationwide, states would save $11 billion by reducing the insurance premiums they currently pay on their employees to cover care for the uninsured.
  3. The Lewin Group found PPACA saving the states and Uncle Sam money. States could save over $6 billion in small change between now and 2014 and $106.8 billion in real money over the whole decade.

Instead of waging futile lawsuits against the PPACA, governors should be begging Washington to kick this plan into gear sooner!

But remember, Kristi Noem is determined to repeal this legislation next month… and thus guarantee that the Daugaard administration sustains the Rounds structural deficit until Matt Michels or Dusty Johnson takes the helm in 2018.

About Cory Allen Heidelberger:
Cory Allen Heidelberger is the loyal opposition. He is passionately in love with his wife, his daughter, and South Dakota. He questions the status quo regularly at his home blog, the Madville Times.

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  1. Dave B says:

    Are you serious in thinking that ins premiums will go down? Tell me how adding a lot of “free” procedures is going to be done without cost? I cannot understand the rational here, the numbers just do not add up…..maybe its the new math..

  2. Loren Budahl says:

    So, Dave . What do your numbers add up to? I do not agree with a lot of Corey’s posts, but I believe everyone has a right to state their opinion. I will read them because many times a different view can
    open better solutions to the mess we have now. I am REALLY TIRED of political parties wanting to destroy or block the other but WILL NOT put forth a plan to replace it.

  3. kiki says:

    So…Uncle Sam will be picking up the tab and the states won’t with Obamacare? And this is supposed to make sense how?? It’s my tax dollars paying for it either way. And last I checked, my good ole Uncle Sam is broke, unless he raises my taxes even more which he desperately wants to do (thanks, oh great O!). This Obamacare is a disaster waiting to happen – passed via backroom deals, partisanship, bribery, and outright lies which are now becoming apparent as to cost. And part of the bill which was most objectionable and was left out (end of life counseling) of the bill has now been enacted via regulation.

    There are alternatives to this monstrosity. Tackle the individual things that are increasing costs – tort reform, making insurance portable across state lines. Treating an adult like a child until age 26 as a child on their parents’s insurance policy is ridiculous. Some things in the bill are, of course, viable and good ideas. But the whole package is a disaster and will not solve the problems, but will invest more power in the fed gov’t which is what the whole purpose is.

  4. uncommon sense says:

    I agree with you kiki. The bill has to much garbage in it just like most other things from Washington.