Think College Is Expensive Now? Wait Until ObamaCare
By JOHN MERLINEJOHN MERLINE12655 Beatrice Street
Los Angeles
CA
90066
USA
, INVESTOR’S BUSINESS DAILYInvestor’s Business DailyInvestors.com delivers unique stock investment research, education and stock tips for new or seasoned investors, combined with daily business and financial news.[email protected]310-448-6600WilliamO’Neil12655 Beatrice StreetLos AngelesCA90066USA12655 Beatrice StreetLos AngelesCA90066USA
Parents and students facing sky-high state-run college tuitions aren’t likely to be thinking about ObamaCare. But perhaps they should, since if left in place ObamaCare will likely end up making college still more expensive.
Why? Because ObamaCare relies heavily on Medicaid — the federal/state program that provides health insurance for the poor — to expand coverage.
But Medicaid is already swallowing up state budgets, forcing states to cut back on everything else, especially support for two- and four-year public colleges.
“The two biggest items of every state budget are Medicaid and education,” Senate Minority Leader Mitch McConnell, R-Ky., told IBD recently. “As the Medicaid mandate rises, the educational funding declines. That is passed on to universities and they raise tuition in order to make up for it.”
A report from the State Budget Crisis Task Force found that even before ObamaCare kicks in, Medicaid costs have been growing “faster than the economy” and “faster than state revenue.” As a result, Medicaid now consumes 24% of state funds, and its ongoing growth “can no longer be absorbed without significant cuts to other essential state programs like education.”
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