Obamacare and California

On Sunday evening, two days after Obamacare was passed, I came down with food poisoning. So far, Obamacare hasn’t helped me at all. What happened? Wasn’t The One supposed to cure all our ailments?

Seriously, Obamacare is going to hit California’s budget, chronically in the red, with another $2 billion in costs. BusinessWeek reports:

For California, with a $20 billion budget deficit, the extra load will cost at least an additional $2 billion to $3 billion annually, said Douglas, chief deputy director for California’s health care programs. He said the overhaul is currently projected to add 1.6 million people to the 7 million enrolled in his state’s program.

“We face enormous challenges just sustaining our existing program,” said Douglas in a March 18 telephone interview. “I just don’t see states having the capacity to move forward on these changes in this environment.”

The numbers of new enrollees because of the overhaul are based on current estimates and may be low, he said in an e-mail. The estimate doesn’t incorporate the growth that the program, known in California as Medi-Cal, may experience even without the new federal legislation, he said.

Medi-Cal recipients are projected to increase 4.3 percent to 7.3 million in fiscal 2011, which begins July 1, spokesman Norman Williams said.

And that’s just for starters. Like Medicare and Medicaid, Obamacare will skyrocket in costs.

And any new socialist program — Social Security in 1935, Medicare and Medicaid in the mid-1960s — costs so much it causes a recession. SS made the Great Depression greater. Medicare and Medicaid, by the time Nixon got done funding them, in the 1970s were a major cause of the “malaise” economy of “stagflation” (stagnation and inflation).

So the national economy isn’t going to recover. Which means the state economy isn’t going to recover. Which means the state budget deficits are only going to get worse.

— John Seiler

No comments

Write a comment
  1. EastBayLarry
    EastBayLarry 24 March, 2010, 07:23

    What will it take for the politicians AND the voters to realise that “There Ain’t No Such Thing As A Free Lunch”?

    Ever increasing entitlements paid for by an ever shrinking “working class” must eventually collapse. Must the collapse be complete before the lesson is learned?

    Reply this comment
  2. StevefromSacto
    StevefromSacto 24 March, 2010, 13:49

    Wow, John! Social Security and Medicare are “socialist”? Haven’t heard that in awhile.

    Didn’t realize you were a proponent of the Charles Dickens School of Economics:

    “Are there no prisons? are there no workhouses?…I help support the establishments I have mentioned–they cost enough–and those that are badly off must go there….If they would rather die, they had better do it and decrease the surplus population.”

    Reply this comment
  3. EastBayLarry
    EastBayLarry 25 March, 2010, 07:47

    Steve, are you a proponent of Alinsky? Are YOU hoping to see our system collapse?

    Reply this comment
  4. StevefromSacto
    StevefromSacto 25 March, 2010, 10:29

    The system won’t collapse if EVERYONE contributes to keeping it strong. As long as you shield some from having to bear their share of the burden…like oil companies, the insurance industry, other corporations and millionaires.. the system can’t be sustained. Unfortunately, there are those who would rather see the system collapse than make it more fair.

    Reply this comment
  5. B.Brown510
    B.Brown510 14 April, 2010, 11:33

    Just found out in a company (un-named non-profit insurance company – not Kaiser) meeting yesterday that Kaiser will be exempted from almost all of the new laws passed as part of Obamacare. Apparently, they are so old and have been around so long, they are ‘grandfathered’ and most of the new laws won’t apply to them. Yes, they are a non-for-profit… BUT, they are also the largest health insurance provider in CA. So much for REFORM…

    Too Big to Fail has now turned in to Too Old to be Taxed! smh… This is not the CHANGE I voted for…

    Reply this comment

Write a Comment

Leave a Reply


Related Articles

CalWatchdog Morning Read – July 11

Senate race competitive, but… VP Biden may be about to endorse the frontrunner More on lawmaker giving Veteran of the

Give officials 100% pay cut

Nov. 26, 2012 By John Seiler The California Citizens Compensation Commission just cut our wonderful state officials’ pay by 5

CalWatchdog Morning Read – August 12

Legislature blocks bill punishing Fentanyl kingpins… … but allows secret talks at the coastal commission to continue Audit slams CalGang