Bills filed in the NC Senate and House today (See SB4) declare that NC must reject federal grant money to set up a Obamacare health exchange and that NC should not expand Medicaid that is 100% paid for by the federal government over the next three years under Obamacare (and 93% thereafter). There are plenty of consequences here for NC, but here are three main ones:
1. NC will have to return most of the $74 million federal grant it just got to help set up the exchange. The majority of this money is to be for modernizing the state computer systems under Medicaid.
2. Only legal immigrants under 138% federal poverty level will be able to get help with health care costs while 500,000 of NC’s citizens under 138% federal poverty level will be barred from getting affordable health care under Medicaid.
3. All the federal money that NC turns down by not modernizing its computers and expanding its Medicaid program is already appropriated under Obamacare. Therefore NC’s money will go to states like Arizona and New York that are moving forward with the Medicaid expansion and exchanges – those states will just get more money (our money) to run better and more effective programs.