Will Deficit Neutral Federal Health Reform Force States To Increase Everyone's Taxes Or Go Bankrupt?

Congress and President Obama are proposing health reform that is deficit neutral only at the federal level. It appears that some medical and health insurance costs are pushed to the states both by legislation and by the necessity to provide comparable medical benefits at the state level. The extra cost will force states to increase taxes or end other programs. The very solution to the health care expense that the federal government and the President are politically unwilling to take.

From The Chattanooga Times Free Press, Wednesday, Oct. 14, 2009, "Bredesen warns cost to state could exceed $3 billion" by Andy Sher:

NASHVILLE — Gov. Phil Bredesen warned Tuesday that pending federal health care legislation could cost Tennessee far more than the $735 million “best estimate” his administration previously has cited.

The $735 million would stretch over five years, but “in addition, there are huge unknowns for the states in this reform,” Gov. Bredesen said, estimating that those costs, if realized, could exceed another $3 billion from 2014 to 2019.

Read the complete Chattanooga Times Free Press article here.