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Excerpt from AP article shows how stimulus and new health bill destroy economy of Arizona and other states in similar situation

Posted on | March 26, 2010 | 1 Comment

Gov. Jan Brewer, also a Democrat estimates it will cost the state $1 billion in both 2012 and 2013.

The discrepancy has its roots in Arizona’s decision to expand its Medicaid coverage to poor childless adults in 2000, adding an estimated 310,000 people to its rolls.

Faced with a large budget deficit in recent years, the state tried to cut its Medicaid coverage. But because it previously accepted federal stimulus funds – which included a Medicaid adjustment – it was not permitted to do so. The terms of the new legislation also make backing out difficult, if not impossible: The state cannot cut current services without risking lawsuits.

Governor Brewer’s $1 billion estimate is based on the expansion of the program in 2012 and 2013. She calls the healthcare bill “financially devastating” to the state, which proportionately has one of the largest deficits in the nation.

Comments

One Response to “Excerpt from AP article shows how stimulus and new health bill destroy economy of Arizona and other states in similar situation”

  1. Randy Hancock
    March 27th, 2010 @ 2:43 pm

    in the spirit of accuracy in the media, the AP article has it wrong. Gov. Jan Brewer of AZ is a Republican, not a Democrat as stated.

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