The Affordable Care Act of 2010 was signed in by President Obama to provide affordable healthcare insurance to senior citizens and the low-income families who cannot afford insurance. The ACA is to be funded by the federal government as opposed to state funded Medicaid, which most states use to provide insurance. With the incorporation of 14 million previously uninsured people spread out throughout the country, the states need to expand their Medicaid coverage for these individuals. It will affect how the state budget is going to be spent as it is projected to cost an additional 2.8% within a twelve year period for the states that agree to the ACA. These figures are estimated by the Congressional Budget Office (CBO), and some lawmakers have found it unfavorable to the already overstretched state budget.
This information was retrieved from the website of the Center on Budget and Policy Priorities that analyzes the impact of the ACA. It enumerates the projected figures regarding of savings the states will make if they do decide to use ObamaCare. It also describes the implications of them doing this, and more importantly for the states that forego it. It is supported by an article by Haislmaier and Blasé that appears on the Heritage website. It talks about the impact of the ACA on all spheres, from the employer to the state.
Angeles, R. (2012). How Health Reform’s Medicaid Expansion Will Impact State Budgets. Center on Budget and Policy Priorities. Retrieved online from www.cbpp.org
Haislmaier, E. F. and Blasé, B. (2010). Heritage Organization. Retrieved online from www.heritage.org