Why Texas will not opt out of Obamacare Medicaid expansion

by Jerry Mandered on July 30, 2012

In a letter to the Kathleen Sebelius, Secretary of the Department of Health and Human Services, Rick Perry, Governor of Texas, had this to say about the Medicaid expansion provided for in the Patient Protection and Affordable Care Act,

I oppose both the expansion of Medicaid as provided in the Patient Protection and Affordable Care Act and the creation of a so-called “state” insurance exchange, because both represent brazen intrusions into the sovereignty of our state.

He goes on to say,

What they would do is make Texas a mere appendage of the federal government when it comes to health care.

I think he is spot on. But all this bluster from the governor does not mean that Texas will not expand Medicaid.

The people of the state do not want to expand Medicaid, the GOP that dominates the state legislature does not want to expand Medicaid, but Texas will expand Medicaid.

Once the headlines die down, every hospital in Texas is going to look at Perry and say, ‘Please tell me why we’re not taking money from the federal government to offset my uncompensated care.’

- Thomas Carroll, health insurance stock analyst for investment firm Stifel Nicolaus

(SOURCE:  www.mysanantonio.com)

Also from the same article,

Quiet for now, insurers are expected to join hospitals and patient advocates to fight for Medicaid expansion and what are enormous amounts of money, even by Washington standards. Nowhere are the dollars bigger than in Perry’s state, where one in four lacks health coverage.

In this respect, the State of Texas, despite all its bluster and Constitutional rhetoric, is no different than Washington. The lobbyists of the second most important industry in the state, at the end of the day, will not be denied their share of the money flowing from the People (via taxes and currency devaluation) through the corrupt halls of Congress.

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