According to media reports, Georgia is asking the federal government to let it become another state to push the cost of providing healthcare to the children of state employees on the backs of federal taxpayers. The Centers for Medicare and Medicaid Services (CMS) has already approved this process for Montana, Alabama, Texas, Kentucky and Pennsylvania.
These states are seeking to push the kids of state employees into the CHIP program, a federal program originally designed to provide health care to kids in lower income families. But this latest move by the states seeks to expand coverage well beyond what the federal program was designed to accomplish.
The national implications of the states attempting to do this are numerous, including:
- Taxpayers in other states will now be forced to finance the cost of state government in another state through their federal tax dollars. This is unfair to taxpayers nationwide.
- This will also reduce the incentive for states to fund the benefits they promise and to live within their means.
- This will lower incentives for states, like Texas and Georgia, to actually come up with appropriate budgetary savings and to live within its means. For example, Gov. Mitch Daniels (IN) has moved his state employee health plan to HSAs which has reduced the burden on taxpayers and created market incentives for state employees to make better health care decisions.
- ObamaCare expands CHIP while reducing the applicable pool of participants in the private insurance market. In this regard, the states that are attempting this maneuver are further reducing that pool which could have negative affects on everyone who relies on private insurance in that state.
- Finally, the real implications have to deal with the Health Care Compact. Texas and Georgia have both adopted the compact with the promise it would let states "keep their money" and give states control over health care to design more efficient health care systems. The move by Texas and Georgia shows these states are hypocrites when it comes to the promised goals of the compact. It also shows that the compact is filled with nothing more than empty promises and hot air. Otherwise, the HCCA (which is pushing the compact) would be doing far more to hold elected officials in these states accountable instead of giving them a pass to say one thing while doing another. If anyone should be decrying the move by these states it should be Leo Linbeck III (a resident of Texas and co-chair of the HCCA) but his silence on the issue speaks volumes about how ill-conceived the compact really is.


As America nears the one-year anniversary of ObamaCare becoming law, AHEC has released a new document entitled: "A Policymaker's Primer on ObamaCare: The Myths, the Costs and a Practical Guide to Defunding the Government Takeover of Healthcare in the 112th Congress."

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