How will the states respond?

Attribution: All rights reserved by Governor of Virginia

The Supreme Court has ruled that Obamacare unconstitutionally threatened to withhold current Medicaid spending to states that refuse to implement Obamacare’s expansion of Medicaid eligibility.

Now the question is whether states will accept Obamacare’s expanded Medicaid eligibility and the billions in federal funds that go with it.

An early article by Politico suggests that Republican governors are at least considering their options.[1] Governor Bob McDonnell said

Each state now needs to decide whether or not it makes sense to enact its Medicaid expansion, which of course comes with a cost of a real hit to Medicare as well as the very likely flight of people from small business policies now into a government-run Medicaid program, which has some other problems. It also has long term unfunded mandate, even though the federal government is picking up a good chunk of that.[2]

1 Reid J. Epstein, POLITICO, Governors draw battle lines over health care (June 29, 2012)
2 Id.