Private Option Scare Part 2 – Families without insurance

Scare 2Obamacare Private Option supporters are using their best spooky voice to say:“If the [Obamacare] Private Option is repealed 170,000 working families will lose their insurance!.

WRONG!  The idea that the Private Option is primarily about working families is WRONG! The idea that there are no other options for healthcare is also WRONG!

FIRST, even without the Private Option, Medicaid already provides insurance to elderly, disabled, children, pregnant women and others.

SECOND, the Private Option extends Medicaid “to a very different population, consisting of able-bodied adults, the vast majority of whom do not have dependent children.

THIRD, even without the Private Option,many enrollees have an income that already qualifies them for federally subsidized coverage from an exchange.

FOURTH, with the minimum wage law that is expected to pass, a person with no children, working at minimum wage, will exceed the Private Option income limit if he or she works more than 38 hours a week. Many enrollees will have an incentive to cut back their work hours in order to stay on the Private Option.

FIFTH, even without the Private Option, minimum wage earners will qualify for federally subsidized coverage on an exchange, even with less than a full-time work schedule.

 The information above is based on written testimony before the House and Senate Public Health Committee.  See: http://www.arkleg.state.ar.us/assembly/2013/Meeting%20Attachments/430/I12345/Edmund%20Haislmaier%20Handout.pdf

SIXTH, this leave much fewer people for the state to assist, and it avoids the real scary thing that they are not talking about. THE OBAMACARE PRIVATE OPTION WILL BUST ARKANSAS’ BUDGET AND WE CAN’T AFFORD ANOTHER TAX INCREASE.

Soon Arkansas will have to pay 5% and then 10% of the costs of the Obamacare PO.  Arkansas contracted with Optimus for a report on the private option. The report gave a conservative estimate of Arkansas costs.  Once the 10% share is required, Optimus projected Arkansas’ cost to be about $333.5 million.

The Optimus projection doesn’t even include the likelihood that Arkansas will also be responsible for many millions of dollars for cost overruns.  Every month the Obamacare Private Option has been in operation, its costs have been above the per person cap agreed to with the federal government.  Plus, the U.S. General Accounting Office issued a report saying that the U.S. Health and Human Services Department is already giving Arkansas too much money.  Arkansas can afford the Private Option even without the likelihood of the additional cost.

What does $333.5 million mean to you? Compare $333.5 million to some of Arkansas’ current budget allocations.  Which of the following agencies or funds would you do away with in order to fund the Obamacare Private Option? What taxes do you want to raise for the Obamacare Private Option?

 CFA chart PO costs

About half the states have refused to adopt Obamacare Medicaid Expansion (Private Option in Arkansas).  It is time to show that Arkansas won’t be duped into paying for Obamacare!