That, or states will let people die. One thing to note about Medicaid is that it’s a very large part of state budgets. If the BRCA–the Senate replacement of the ACA (Obamacare)–were to pass, states will have to raise taxes significantly to make up the shortfall. Or, of course, deny people care, throw people out of nursing homes, or, erm, let them die.
For example, in Massachusetts–a wealthy state–the BRCA cuts are over fourteen percent of the state budget. To make up the difference, Massachusetts would have to increase income tax revenues by 39 percent, or, to do this through the sales tax, increase the sales tax rate to 12.7%. In Mississippi, income taxes would either rise by 75 percent, or the sales tax would have to increase to 10.7 percent–in one of the poorest states in the country. In West Virginia, income taxes would either have to increase by 111 percent (yes, more than double), or the sales tax would have to be 19.4% (yes, near twenty percent–not a typo). Montana, which doesn’t have a sales tax, would need to increase income tax revenues by 117 percent.
Then, of course, even after these tax increases, anyone 34 years or older who is on the exchanges and not poor would also see massive premium increases:
Right now, I’m guessing there are more than a few Republican senators and congressmen praying that the Democrats find a way to stop this. Ending Obamacare sounded great, but it’s going to be damn expensive. And people are going to notice it.