Washington Free Beacon writer Ellison Barber told Megyn Kelly on Friday that surging Medicaid enrollments, rather than sign-ups for private insurance, threaten to derail ObamaCare.
“Clearly, if they’re not enrolling in the exchanges … that undercuts the entire picture that (the administration) presented: that enrollment was being successful at the state program, because (people) were enrolling in an entirely different program,” she said on "The Kelly File."
That’s a major problem, Barber explained, because the system is unsustainable if only sick people are collecting insurance subsidies and Medicaid.
“If you don’t have healthy people paying into the exchanges, then the entire system will collapse,” she said.
And unlike the federal government, which can run a budget deficit, nearly all states have balanced budget provisions – which severely curtails their spending flexibility when it comes to accommodating all the new Medicaid recipients.
“(The states) cannot expand spending, even if they want to,” she said. “To have to care for all these people on Medicaid now, when they haven’t planned for it in their budget, they’re either going to have to raise taxes, raise income payroll taxes, or cut things from other spending, like roads, schools and things like that.”