Republican Arizona Gov. Jan Brewer To Raise Taxes To Pay For Obamacare Medicaid Expansion

[Judi Lynn]

Source: Associated Press

Republican Arizona Gov. Jan Brewer To Raise Taxes To Pay For Obamacare Medicaid Expansion
By BOB CHRISTIE 01/20/13 01:28 PM ET EST

PHOENIX -- Arizona Gov. Jan Brewer has built a political career in standing up to the federal government over everything from immigration to health care. So she surprised almost everyone when she announced last week that she not only plans to push for an expansion of the state's Medicaid program under the federal health care law – she plans to fund it by raising taxes.

A conservative Republican, Brewer is believed to be the first governor to publicly come up with a way to fund the controversial Medicaid expansion. Not even California Gov. Jerry Brown, a Democrat in a state that largely supports the new federal health plan, has figured out how to pay for a boosted Medicaid plan.

Her proposal to add about 300,000 low-income Arizonans to her state's Medicaid plan relies on funding from hospitals through a so-called provider tax. The idea is already used to fund some Medicaid plans in 39 states, but none have tapped it to pay for the federal expansion and many have at least some room to expand their hospital taxes.

The Medicaid expansion is intended to cover about half of the 30 million uninsured people expected to eventually gain coverage under President Barack Obama's health care overhaul. The law expanded Medicaid to cover low-income people making up to 138 percent of the federal poverty level, or about $15,400 a year for a single person. That provision will mainly benefit low-income childless adults, who currently can't get Medicaid in most states. Separately, the overhaul provides subsidized private insurance for middle-class households.


Read more: http://www.huffingtonpost.com/2013/01/20/jan-brewer-medicaid-expansion_n_2516545.html?utm_hp_ref=business

[Tx4obama]

1. I do not understand the part below

-snip-

Under the federal legislation, Washington would pay the entire cost of the Medicaid expansion for the first three years, gradually phasing down to 90 percent of the cost after that. It's a far more generous matching rate than the federal government provides for other parts of the Medicaid program that's designed to get states to sign on.

But Arizona appears to be unique in that it will see large costs immediately because of how its existing plan is arranged. So it needs to come up with new funding by January, while other states don't.

-snip-

The article did not explain WHY Arizona would see large cost immediately.

The federal gov pays 100% for the first three years - so 'WHAT COSTS' are they referring to?

[PoliticAverse]

5. Here is the Governors full Message about Medicaid (.pdf) that explains the issue:

http://azgovernor.gov/dms/upload/PR_011413_MedicaidBudgetMessage.pdf

This Forbes article also discusses Arizona's unique history concerning the Medicaid:

http://www.forbes.com/sites/aroy/2013/01/19/how-jan-brewer-walked-arizona-into-obamacares-medicaid-expansion-trap/

[Tx4obama]

6. Thanks for the links :)

[Turbineguy]

2. Somebody must have shown her

how to scam this.

[freshwest]

11. +1

[Faygo Kid]

3. Pinch me. Next you'll tell me Rick Scott in Florida is doing this.

Nah, that one is impossible.

[underthematrix]

4. hmmm . . . didn't know a gov could raise without you know

legislative action by the state legislature

[saidsimplesimon]

7. omg, Jan is term limited. What to make of her largess? I'm shocked and

awed.

[Coolest Ranger]

8. I thought she wanted to get reelected didn't know she was term limited

[okaawhatever]

13. She was secretary of state & napolitano gov when napolitano got homeland sec job. Brewer was

promoted to gov when napolitano left. They have the line of succession in their constitution. She was then elected in 2010. Her argument was she didn't serve a full term the first time, so it shouldn't count as one of the 2 times you can hold the office.

[PSPS]

9. "the controversial Medicaid expansion" and "Not even California Gov. Jerry Brown"

A conservative Republican, Brewer is believed to be the first governor to publicly come up with a way to fund the controversial Medicaid expansion. Not even California Gov. Jerry Brown, a Democrat in a state that largely supports the new federal health plan, has figured out how to pay for a boosted Medicaid plan.

Gee, AP. Agenda much? It's only "controversial" in the media bubble where 20% of the population (i.e., the hard core GOP racist "base&quot gets 80% of your attention.

[vinny9698]

10. Medicaid expansion will also benefit hospitals and doctors that's who she is concerned about

With Medicaid, hospitals will not be stuck with patient coming in to the ER and then walking away from their bill. Doctors will get more paying patients to charge the government with unnecessary procedures.

[Igel]

12. perhaps.

Notice that it's being paid with a provider's tax. That means hospitals will pay a tax that will fund Medicaid so that the government can pay hospitals.

The real benefits come from those who pay for hospitals and nursing homes using funds other than Medicare/-aid. This includes cash and private insurance. They'll face higher rates because the hospitals will pass the 2% tax through to them, and they'll subsidize Medicaid.

My mother just moved into a nursing home. She's self-funding until she's indigent. This will just increase her payments each month until she's indigent. Perhaps her life's savings will see her through until death. Perhaps not. My parents were very frugal and squirrelled away every cent they could during 45 years of working. But when she reaches "indigent" status her standard of care is going to take a real dive.


The idea that ER usage drops greatly after insurance. Where near-universal coverage has applied the ER usage patterns didn't change, at least not as of 2010. Medicaid pays for ER, but at a level that barely covers reimbursement for expenses.

Cynicism is a poor foundation for public policy.

[okaawhatever]

14. I guess the question becomes, if hospitals and doctors will benefit from not having to write off

uninsured and uninsured patients, will we see a similar savings across the board? If that isn't kept an eye on, we will have an issue. If the dr.s and hospitals are now taking uninsured, and they don't have a choice, their costs should reduce. period.

[caseymoz]

15. She can blame it on Obama.

Look no further. Also expect it to be as badly administered as possible.

[malibea]

16. That what they voted for!

Well what do they expect? They voted for her and I am sure they expected no less. You get what you vote for- plain and simple. But again, I don't hear any Arizona residents griping, so they must be fine with it. "Atta girl", Jan, keep it coming.