Obama Temporarily Halts Medicaid Cuts in Arizona, Other States

Photo: Wong/Getty; Tingle/AP

States like Arizona, which is governed by Republican Jan Brewer, are itching to dump hundreds of thousands of low-income and unemployed people from their state Medicaid programs.

The deep cuts would save the financially strapped states billions of dollars in the long run, say those in favor of the cuts.

But is that really true?

As someone who has been on the financial side of health care for more than 15 years, and has been fiscally responsible for a network of thriving hospitals, I can tell you without any hesitation… if Arizona suddenly dumped 280,000 uninsured Americans into an already overburdened and underpaid health care system, the state will eventually pay through the nose.

And so will millions of unassuming Americans. Why? Number one: health care cost will rise. Number two: when hospitals don't get paid, they eventually shutdown.

If you already think the waiting room in the ER is overcrowded - just wait!

But there is a glimmer of hope.

According to The New York Times, instead of granting governors like Jan Brewer a waiver, which gives her legal permission to drop single, non-disabled Medicaid recipients from Arizona's state insurance plan --- the Obama Administration has suggested the governors go back to the drawing board and find a way to make the existing program more cost effective.

The President’s suggestions include further reducing benefits, curbing overuse of costly prescription drugs, and attacking fraud.

But don't get too excited.

The Obama Administration refused to comment on whether it would allow states like Arizona to impose even tighter eligibility restrictions on Medicaid applicants.