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The Willis Report

No One Can Afford Obamacare

Obamacare is going to cost you more.

From taxes to fees to your actual health insurance. It's also costing states more. A fortune in fact - because of a Medicaid mandate in the law.

The Health-Care Act requires states to keep their Medicaid rolls as is - and expands eligibility.

So states already facing a $175 billion dollar shortfall—that's a combined total for all 50 states—those states won't be able to cut Medicaid to make ends meet.

The Congressional Budget Office - not known for its accuracy - predicts the Medicaid mandate would cost about $60 billion over the next decade. But a Joint Congressional Committee report out yesterday says the price tag is more like $118 billion.

That's because half of those obtaining health care coverage under the new law will get it through Medicaid - the very program we can't afford already.

To top it all off, the CATO Institute today fired back at the Republicans in Congress who authored this report, saying even they are underestimating the ridiculous cost to states due to Obamacare. The study looks at the five most populous states: California, Florida, Illinois, New York and Texas.

Over the next ten years or so, New York will have one of the highest bills—$65.5 billion—because of the state's high cost for enrollees. The more than $30 billion additional costs in Texas are nearly 20% more than pre-Obamacare.

The prediction for Florida at nearly $24 billion nearly doubles what the Congressional Committee predicted.

The other downsides of this massive law is that it may actually be disincentivizing employers from providing health care because they can just pay a fee and move on. That's if they even hire workers to begin with.

And like we've been telling you - Obamacare is the next big entitlement program.

State governments can't afford it, the federal government can't afford it, and you and I can't afford it.

Be sure to catch the Willis Report on the FOX Business Network every weekday from 5-6pm ET.

Gerri Willis joined Fox Business Network (FBN) in March of 2010. Willis is an anchor and personal finance reporter for the network.

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