Why Mayors Might Want Obamacare Even If GOP Governors Reject It

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A lot of uncompensated health-care spending comes out of municipal budgets, not state ones, and the bill could save strapped cities money.

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Center for American Progress President Neera Tanden, who worked to develop the health-care overhaul for President Obama before returning to Washington's think tank sector, laid out a reason rejection of the Medicaid expansion provision in the recently upheld law by Republican governors might not be so very popular at the state level.

"There is a sort of political economy problem on Medicaid," she said, turning to the part of the Affordable Care Act that was not upheld by the Supreme Court. States cannot be mandated to accept the expansion of Medicaid, even with a 100 percent federal match to begin with, or risk losing all their Medicaid funding, the court ruled. Ten GOP governors "have said definitively that they will not accept the funds, while 19 are still considering other options," according to a ThinkProgress survey.

Notes from the Aspen Ideas Festival -- See full coverage

"States save a lot of money through their Medicaid" through the new bill, Tanden told an audience Monday at the Aspen Ideas Festival. "...the problem for some states is that -- the challenge is that that occurs often at the local level."

She continued: "So Florida is a perfect example. ... So Florida overall will save, but its not clear entirely how much that Governor Scott will save." Scott has said he will reject the Medicaid expansion for Florida.

"I will say that as the leader of a state you should care about both the state level costs and municipal costs, but it's not entirely clear that every governor will. And I think that will be a friction."

Mayors might recognize a "big windfall" for communities in the Medicaid expansion as currently uncompensated local costs born by municipalities begin to be eased with the new Medicaid funds from the federal government. And they might turn against their governors if they see them getting in the way of easing one strain on tight local budgets, Tanden suggested.


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Garance Franke-Ruta is a senior editor covering national politics at The Atlantic. More

She was previously national web politics editor at The Washington Post, and has also worked at The American Prospect, The Washington City Paper, The New Republic and National Journal magazines. At The Prospect she won the 2007 Hillman Prize awarded to its group blog, "Tapped."

In 2006, she was fellow at the Joan Shorenstein Center on the Press, Politics and Public Policy at the Harvard Kennedy School in Cambridge, Mass., and in 2007, a summer fellow with The Iowa Independent, based in Des Moines, Iowa.

Garance has lectured at the Kennedy School, the Harvard Art Museums, Williams College, Wellesley College, Brandeis and Georgetown Universities, and taught in Georgetown's Master of Professional Studies in Journalism program. She also has made numerous appearances on national and regional television and radio programs.

Born in the South of France, Garance grew up in San Cristobal de las Casas in Chiapas, Mexico; New York City, New York; and Santa Fe, New Mexico. She has resided in Washington, D.C., since graduating from Harvard in 1997.

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