Guess who failed Econ 101?

That is, if he ever even took it: Mr. Obama says that expanding Medicaid ‘doesn’t cost you a dime‘:

President Barack Obama criticized Republican governors in states where they are not expanding Medicaid under Obamacare, saying, “It always puzzles me when you decide to take a stand to make sure poor folks in your state can’t get health insurance, even though it doesn’t cost you a dime.”

***

There are 26 states and the District of Columbia that have expanded their Medicaid programs; 24 states have not expanded such programs.  “Under the Affordable Care Act, the federal government will fund 100 percent of the cost for states to expand Medicaid for three years, and that will gradually decline to 90 percent of the costs in 2020 and beyond…

And what happens to the state budgets once the Feds stop paying 100%?  I don’t know, but take a look at this:

ObamaCare’s cost is estimated at up to net cost of $1.36 trillion dollars by 2023.

Hmmm.  Dividing by 50, that comes out to $27.2 billion per state.  Ten percent of that (i.e., the amount that the state of Alabama would end up paying for) would be $2.72 billion.  If Medicaid was expanded in Alabama, the state government would need to come up with an extra $2.72 billion.  And the state of Alabama currently has a $8.4 billion deficit.  Can you see the problem?  And that is the net cost, meaning that it is the deficit left over after everything is paid for.  Whiskey Tango Foxtrot?

A more accurate figure may be found by multiplying the population of a state by the cost per citizen which is:

The CBO estimates the average marketplace subsidy per subsidized enrollee will be $5,290 in 2014.

Yeah, yeah.  I know, government estimates are notoriously inaccurate.  But this one is useful, because if we multiply the population of Alabama (4,833,722) and the CBO estimate, we get a total cost of approximately $25.57 billion.  Not far off from the $27.2 billion quoted above.

Thank God I live in one of those ‘backwards’ states:

Gov. Robert Bentley (R-Ala.) spoke out against expanding Medicaid earlier this year saying  it would take our nation deeper into debt and is not really “free.”

“The Affordable Care Act, or Obamacare,  and Medicaid expansion is taking our nation deeper into the abyss of debt, and threatens to dismantle what I believe is one of the most trusted relationships, that of doctors and their patient,” Bentley said. “Ladies and Gentlemen, nothing is free. The money the federal government is spending with wild abandon is not federal dollars – those are your dollars, your hard-earned tax dollars.”

Gov. Bobby Jindal (R-Louis.) said  the expansion could cost taxpayers in his state $1.7 billion.

“Medicaid expansion could cost Louisiana taxpayers up to $1.7 billion over the first 10 years of implementation, and the cost will keep rising,” said Jindal.

The two governors are right.  It is obvious that they have some grasp of basic economic theory.  After all,  there is no such thing as a free lunch.  But what do you expect, when Mr. Obama has been getting a free lunch his entire life?  He’s just another economic zombie.

We need to call this Saturday’s LSU-Auburn game the Obamacare Bowl…

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Categories: Economic Illiteracy, Government Shenanigans, Healthcare, Obamacare, so close!

Tags: , , , , , ,

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