Texas Considers Medicaid Withdrawal

[MsDoodahs]

http://www.nytimes.com/2010/11/07/us...dicaid.html?hp

This will be interesting....

[tpreitzel]

If Texas attempts to withdraw from Medicaid, they need the ability to control the flow of funds from Texas to the federal government. The latter mechanism needs to be in place before the former, i.e. withdrawal, occurs.

[MsDoodahs]

Agree with that.

Interesting times ahead, depending on what they decide to do, for sure.

[specsaregood]

they need the ability to control the flow of funds from Texas to the federal government.

Is Texas a tax donor state? ie: pay more in than they get back?

[tpreitzel]

Is Texas a tax donor state? ie: pay more in than they get back?

I don't know. Frankly, EVERY state of the union needs to pass legislation similar to that proposed by Ray McBerry of Georgia that subjects federal tax collections to an audit through a state agency before distributing those collections to their respective federal agencies... just in case the federal government wants to play hardball.

[Stary Hickory]

If Texas attempts to withdraw from Medicaid, they need the ability to control the flow of funds from Texas to the federal government. The latter mechanism needs to be in place before the former, i.e. withdrawal, occurs.

They can simply pay taxes to Texas and Texas can send it to the government. It's time taxes were set by the states again anyways. The Federal Government is incompetent and should be ignored to the extent it encroaches on freedom beyodn the scope of the Constitution.

[cindy25]

Texas has to act within the decade; the same demographic problem that is destroying NY and CA will hit TX soon; maybe ending medicaid would encourage some to leave Texas

[Zippyjuan]

Is Texas a tax donor state? ie: pay more in than they get back?

According to the Tax Foundation, Texas gets about $0.94 in federal spending out of each dollar the pay in taxes (figures for 2005). That ranked them #35 (#1 being the biggest recipient of fed dollars for each tax dollar their citizens send to Washington- New Mexico is #1 getting $2.03 back from each dollar they send in and New Jersey #50 just getting back $0.61). http://www.taxfoundation.org/research/show/22685.html

The Feds pay 60% of the medicaid costs. Would Texas be able to cover that (I would assume that opting out means no tax dollars sent to Washington to pay medicaid so would the tax dollars they send to pay for medicaid be higher than the dollars they get back from the government on it)?