ObamaCare Insurance Exchange Could Cost States Health Insurance Tax Revenue

And some of their revenue to fund Medicaid and State Children’s Health Insurance Programs (SCHIP):

Federal reform could cause more people to leave state-regulated private health insurance for…federally regulated private insurance… “This will result in reduced revenues for states charging premium taxes on state-regulated health insurance…” These revenues are most important in Nevada, Hawaii, New Mexico, South Dakota, and Georgia, ranging from 12 percent to 32 percent of states’ Medicaid and SCHIP spending.

Pacific Research Institute study by John R. Graham here.

Comments (4)

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  1. Tom H. says:

    Ahh. Another unintended consequence?

  2. Ken says:

    Interesting side effect.

  3. Virginia says:

    It’s always the things that you don’t think about that really come back to haunt you.

  4. Virginia says:

    Come to think of it:

    Will the states that lose state insurance tax be left with two choices: increase taxes or rely on federal funds?

    If they accept federal funds (which states seem incapable of resisiting), you’ve just handed more power to the federal government.

    Just a thought.