I Guess the States Did Want Obamacare to be More Expensive

Others are covering the latest ins and outs of the Medicaid expansion deals with much more timeliness than I. The Florida state Senate has rejected Gov. Scott’s deal with HHS. Word is they want a deal more like Arkansas got.I’m reading that Texas and other states might want in on this deal, too.

I feel compelled to repeat myself again. This will cost more money, likely a lot more money. Private insurance, even that on the exchanges, is much more expensive than Medicaid. I get why these states want their deals. Those in the health care industry will make more, those in the insurance industry will make more, and various other interest groups will make more.

But it will cost us – taxpayers – much more money. For what? The coverage is likely skimpier, they’re trying to get cost-sharing in, and there are tons of hoops and inefficiencies. And it costs more!

I’m still fascinated by this. It really does appear that all of the talk of Obamacare being “too expensive” was just talk. It turns out that increased government spending in the “right” areas for the “right” reasons is no problem at all.

[Originally posted at The Incidental Economist]

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