ObamaCare Ruling May Hasten Demise of Blue State Model

One effect of the ObamaCare ruling is that states can safely reject ObamCare’s Medicaid expansion without losing access to all Medicaid funds. It appears that Texas, wisely, will be doing just that, as will Florida.

Hopefully all this won’t matter, as Republicans will take the White House and Senate in November and repeal ObamaCare as job one in 2013. But in the unfortunate scenario where ObamaCare isn’t repealed, here’s an example of Blue States increasing the size and scope of government while converting more of their residents from independent citizens to wards of the state while Red States continue to either scale back intrusive government or at least refrain from expanding it. And with the Medicaid portion of the ObamaCare ruling, it’s going to be easier than ever for Red State government to Just Say No to new federal welfare initiatives with new funding strings attached.

So Red States will continue to stay lean, while Blue States move ever more quickly toward bankruptcy.

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