The Villages TEA Party in an email to its members states:
“FACTS: On Monday, January 7th, Governor Rick Scott will meet with HHS Secretary, Kathleen Sebelius to discuss expanding Medicaid in the State of Florida. Economists predicted in November 2012 that the Medicaid expansion would cost $9 Billion, however the Florida Agency for Health Care Administration estimates the cost to be near $25 Billion. Those who know the Obama Care law have always said that implementing it will break the states eventually, and increasing Medicaid is a big component in this destruction. Many are already seeing the numbers inflating.”
The costs of the Medicaid expansion will impact the Florida Medicaid program.
According to StateHealthFacts.org Florida in 2010 spent over $17.3 billion on Medicaid. Medicaid costs have gone up annually. From 1990-2001 Medicaid costs in Florida went up 11.8%. Between 2001-2010 Medicaid costs increase in Florida more than doubled to 24.5%, outpacing a national average cost increase during the same period of 19.8%.
According to the Tampa Bay Times and Miami Herald, “The federal government agreed to fund 100 percent of the cost for states to expand Medicaid for three budget years. The federal government would cover 95 percent of the costs in 2017, 94 percent of the costs in 2018, 93 percent of the costs in 2019 and 90 percent of the costs in 2020 and beyond.”
The expansion is voluntary, but the federal government said it would penalize any state (by withholding Medicaid funds) that failed to comply. That penalty was declared unconstitutional by the U.S. Supreme Court on June 28, 2012. The court’s ruling allows states like Florida to decline expansion without losing any current funding.
Governor Scott release the following statement today:
WASHINGTON, DC – Today, Governor Rick Scott met with U.S. Health and Human Services Secretary Kathleen Sebelius to discuss how the state can improve cost, quality and access in healthcare for Florida families. Governor Scott said his meeting with Sec. Sebelius focused on the projected $26 billion state cost of doubling people in Florida’s Medicaid program under the president’s new healthcare law, and requesting HHS approval for the state’s long-term care and Statewide Medicaid Managed Care plans that would make healthcare more affordable.
Governor Scott said, “We had a great conversation with Sec. Sebelius today about how we can improve cost, quality and access in healthcare for Florida families. We need to know more about how the healthcare choices facing our state would affect families – many who are still struggling to get a job and make ends meet.
“I believe that Medicaid is an important healthcare safety net. Florida’s Medicaid program today provides health care to over 3.3 million Floridians and is approximately 30 percent of our state budget. The cost of Medicaid has been growing at three-and-one-half times the growth rate of the state’s general revenue, which crowds out our ability to invest in K-12 education, higher education and other priorities.
“Growing government is never free. Under the new healthcare law, Florida would nearly double the people in our Medicaid program over 10 years. AHCA estimates that this would result in a total cost to taxpayers of more than $63 billion over 10 years, including $26 billion in costs to Florida taxpayers. We also know that adding people to Medicaid will affect our state for generations to come because government growth is almost never reversed. The current fiscal cliff debate here in Washington is proof of that.
“I also asked Sec. Sebelius to approve our state’s Statewide Medicaid Managed Care and long term care proposals, which are currently awaiting HHS approval. We also discussed ideas for lowering health care costs, including tax incentives for individuals to buy insurance, price incentives for healthy behaviors, and flexibility to buy personalized coverage. Our ultimate goal is to lower the cost of healthcare in Florida so all families can access the level of care they desire.”