Since the new ‘Repeal and Replace’ bill never got to a vote, it will hopefully live to fight another day in a different form. President Trump showed he’s smart enough to fold when necessary and I suspect he’s ‘one hell’ of a poker player, because he bluffed to the bitter end. On the other hand, New York’s Governor Andrew Cuomo is another story altogether.
Thanks to Cuomo, liberal controlled New York has a huge problem with Medicaid. And many other states are right behind with bubbles about to burst and middle class tax payers footing the bill. New York is very charitable with its’ Medicaid program, paying 100% of medical costs for 19% of the state’s population, but those costs are nearly twice the national average per person. Along with wasted money, New York’s biggest problem is Medicaid fraud, because as with any government run program, honest oversight is none existent.
Medicaid is partially funded by the federal government, but each state controls its’ own program and most importantly – the money. So New York State politicians in Albany get to unilaterally decide the parameters of a Medicaid program that costs double that of most other states. What the left wing downstate powers have done in New York is pass the cost down to working middle class tax payers. They accomplished this by forcing counties to foot the Medicaid costs for their areas.
This mandate hits local taxpayers directly in their property taxes (except in New York City, which collects much of the cost through its own personal income tax). Property taxes are New York’s largest cost disadvantage; on a per capita basis they are about $11 billion higher than they would be if New York matched the national average. Many renters also don’t understand that higher property taxes mean higher rents and less quality rentals for everyone in the state.
New York county governments collect $4 billion in property taxes every year and a large chunk of that goes for Medicaid. The average ‘home owning’ family of four pays $5,000 yearly for its share of Medicaid costs. In fact, with the average cost of family health insurance over $5,000 in New York, families that own homes are paying two medical insurance bills, one for themselves and one for a family living somewhere else in the state.
Don’t take this wrong – I realize we have to help other citizens, but when the state wastes money to the tune of ‘double the national average’, there’s a big problem. For New York that problem is more people moving out than in the past four decades and you can bet those people are actual tax payers. That means New York is losing its’ tax base, and less cash flow means even higher taxes until the state ends up bankrupt.
Moreover, this is happening in other states as medical costs continue to rise while coverage prices and deductibles follow suit. In addition, the rise in cost is actually causing a decrease in quality as the best doctors limit their practices or move to other states. With the temporary death of the republican healthcare overhaul, the entire economy is about to face a disaster we haven’t seen since the Housing Bubble burst of 2007 and it could even be worse.
Just fixing the costs of healthcare would make a huge impact all the way around, but if those fixes aren’t put in place this year, Obamacare will grind to a stop and it will take many state economies with it. The feds can weather the losses, but the states will be screwed and this could set off another chain of personal bankruptcies, lay-offs and foreclosures. For all this – you can thank president Obama – Not President Trump.