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8 states opting out of Medicaid expansion

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    Iowa Gov. Terry Branstad concerned about costs

  • Duration 4:34
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More and more states rejecting the health care law's Medicaid expansion plan but in Florida several health groups are now promising.

Not to go down without a -- eight states are now -- definitively opting out among those Florida Iowa South Carolina Texas Wisconsin.

And another eleven states are considering.

Opting out and among those some key battleground -- -- like Virginia.

Ohio Pennsylvania Nevada and Colorado.

Governor Terry Branstad is the opting out.

He's the governor of Iowa and he is planning to -- -- of Medicaid.

He's currently in Virginia from the National Governors Association meeting governor good morning.

Great to be here and beautiful Williamsburg.

This is a 104 annual meeting of the National Governors Association.

Were really pleased to be here being hosted by governor McDonnell from Virginia.

I leave Iowa and they start working for the chamber of commerce in Virginia.

No but I love Iowa and I love the fifth the hospitality and -- and you know Colonial Williamsburg is that part of our.

Important part of our American history and so we're really proud to be here.

And I just want to say that I'm chairman of the health and human service committee for the National Governors Association.

And -- one of the governors that doesn't believe in giving people false promises and that the federal government is deep in debt.

And that's exactly what you're here to talk about why are you opting out of Medicaid for your state.

Well first of all I think we need to know the circumstances.

The federal government -- -- in the last several years spent more than trillion dollars more than it's taking and we now have a sixteen trillion dollar national debt.

40% of the money.

That the federal government spending -- -- -- money and guess what in 2014.

They're gonna not.

Bring spending under control they're gonna add a new entitlement program it's gonna cost an additional half a trillion dollars a year.

Now in -- -- were supposed to believe they're gonna pay a 100% of that.

They haven't paid for they mandate on -- special education has been on the books for decades there's no way the federal government's going to be ill afford to do this.

It not only that what happens when interest rates go back -- right now the Federal Reserve has kept them rock bottom every 1% they go up.

The cost of funding.

The national debt goes up 160.

Billion dollars.

I'm not gonna make false promises I have a better approach in Iowa we have a goal to be the healthiest state in the nation we want people take ownership of their own health.

The state of Iowa is working -- a public private partnership.

To encourage people to exercise.

Use good nutrition not use tobacco product shore and we want to work -- them we don't want the federal government setting year old.

And that those are lofty goals and obviously every one wants to be.

At their peak -- but what do you say to your fellow Iowans who believed that they need this Medicaid expansion.

Well I just say we're not gonna give you a false promise we're not going to embark on something we know we can't afford as a state.

We can't afford is a country instead we want to do it.

By working with you to help improve -- help.

And we have our own plan that we're gonna work out in the state of Iowa and it's part of this whole healthiest state initiative I already have indicated on a voluntary basis.

I am going to be -- 20% of my health insurance we have -- -- paying zero I think that's wrong many people are paying.

A 100% of their health insurance or a significant amount of it.

Would just by having state employees pay 20% we can save a hundred million dollars that can help us meet the needs of other people in our state.

Yet there are some reports governor that say that by opting out you will actually saddle Iowa.

-- more costs down the road.

Well that the fact is if you look at the facts.

If you realistically look at the federal government.

When you can see that 40% of what they're spending has borrowed money.

They're deep in debt.

We don't believe that they're going to be able to fulfill that but if we -- and then were stuck with the federal role and we have this maintenance of effort requirement.

That's gonna just literally -- our budget I inherited a financial mess I've got the state back on track we're spending less and we're taking again.

And we now restore our cash reserve an economic emergency account.

We want to grow the economy bring more business and jobs to our state and not be saddled with a new entitlement that we can't afford.

Well governor Terry Brad said thanks so much for joining us from the lovely commonwealth of Virginia have a great time down there.

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