Gov. Perry's office today sent a letter to U.S. Health and Human Services Secretary Kathleen Sebelius reaffirming his opposition to the Affordable Care Act.
Perry said in his letter, "I stand proudly with the growing chorus of governors who reject the Obama care power grab. Neither a 'state' exchange nor the expansion of Medicaid under this program would result in better 'patient protection' or in more 'affordable care.' They would only make Texas a mere appendage of the federal government when it comes to health care. "
If Gov. Perry has his way, Texas will neither expand Medicaid nor establish a health care insurance exchange, two major provisions of the Affordable Care Act. When the Supreme Court upheld the insurance mandate provision of the Patient Protection And Affordable Care Act, which the GOP calls "Obamacare," the court also ruled that states may decline to extend Medicaid coverage to 17 million Americans with incomes below 133 percent of the federal poverty level, which is $14,856 for an individual this year.
If Texas declines the federal funding to implement the Medicaid expansion program, up to 2 million Texans will remain uninsured, seeking care in emergency rooms, shifting costs to the privately insured and increasing uncompensated care costs to health care providers. According to a report published by Texas' Republican state Comptroller, Susan Combs, the state’s uncompensated acute-care hospital expenses (emergency room and other urgent care) totaled $460 per resident in 2006, not including uncompensated costs incurred by charitable clinics or physicians. The U.S. average for such costs was $287.57. The uncompensated care problem in Texas is exacerbated by the fact that uninsured individuals often delay seeking medical care, allowing their health problems to become more serious. By the time such individuals do seek treatment, their conditions may be much more costly to treat, driving uncompensated costs even higher. It is estimated the annual costs of such uncompensated care to run in excess of $10 billion.
By refusing to participate in federal Medicaid expansion, Perry, and the Republican controlled state legislature, will force local taxpayers to pay for otherwise uncompensated care provided hospitals, which will hike hospital district taxes. Health insurance premiums, for those lucky enough to have insurance, will increase, too. The Texas Hospital Association estimates that annual health premiums for an average Texas family are $1,551 higher due to the added costs of covering the uninsured.