Americans for Prosperity Calls House Plan for Savings from Expanding Medicaid “Absurd”

March 25, 2013

MANCHESTER – Americans for Prosperity – New Hampshire (AFP-NH) today called out plans by the House Finance Committee to include savings to the state of $500,000 for expanding Medicaid by adding between 35,000 and 80,000 new individuals to the government-run program for the poor and disabled.

“The notion the state will save money by adding tens of thousands of individuals to the Medicaid program is simply absurd and should be viewed as not serious,” said Greg Moore, AFP-NH State Director.  “There will be significant ‘build out’ costs in infrastructure alone to add that many people to the program. The federal government won’t pick up these expenditures, which will total in the millions.  This has been well-documented by numerous think tanks and policy shops nationally.  To simply gloss over these outlays shows that this budget exercise is simply a plan to ‘kick the can down the street’ by the Finance Committee.  Our citizens deserve better.”

Moore added that the long-term costs of Medicaid expansion will dwarf the infrastructure outlays and will create an unaffordable program for years to come.

“Medicaid expansion is a terrible deal for New Hampshire taxpayers,” added Moore.  “A study using data from the non-partisan Kaiser Foundation shows that this massive government growth will cost our citizens $126 million in state funds over the next 8 years, and that assumes that the federal government keeps their word and doesn’t reduce its commitment.  Add to that the fact that the health outcomes for Medicaid are well below those for other insurers and even below those with no insurance, and it’s easy to see why Medicaid expansion is bad medicine for the Granite State.  The House should reject this irrational budget and its insistence on passing this poorly conceived onto our residents.”

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