Blog ››› ››› JUSTIN BERRIER
Fox Business host David Asman baselessly speculated that health care reform's Medicaid expansion could bankrupt states, a prediction at odds with economic experts who have declared the expansion "a very favorable financial deal for states."
The Affordable Care Act allows states to expand Medicaid programs to provide coverage for people whose income falls below 138 percent of the federal poverty level. Initially, the federal government covers the full cost of new enrollees. After 2016, the federal government will continue to pay 90 percent of the program's cost.
On the December 11 edition of Fox News' America's News HQ, Asman warned that new Medicaid enrollees who became eligible for coverage due to the Affordable Care Act's would be covered at "an extraordinary extra cost to taxpayers." Asman went so far as to claim the cost could bankrupt states:
ASMAN: States are spending 30 - 40 percent of their entire budget on Medicaid. And as these more people sign on to Medicaid because of Obamacare, they're going to not only cost us taxpayers more money on the federal level, but they may make some states go bankrupt, because they won't be able to keep up with all those extra Medicaid patients.
Expanding Medicaid would not only not bankrupt states, according to the Center on Budget and Policy Priorities (CBPP), it "will add very little to what states would have spent on Medicaid without health reform." CBPP found that "Expanding Medicaid is thus a very favorable financial deal for states":