June 21, 2012

Later this month, the Supreme Court of the United States will issue its ruling on the constitutionality of the Patient Protection and Affordable Care Act (PPACA), also known as Obamacare. As I closely monitor this development, I wanted to update you on issues surrounding the Medicaid expansion in Obamacare.

As you may know, Obamacare would expand eligibility for Medicaid, which finances health care for low-income individuals using funding from the federal and state governments. Rather than ensuring the Medicaid program remains a fiscally sustainable safety net, Obamacare enacted the largest expansion of the entitlement program since its inception in 1965. In fact, half of the individuals gaining health care coverage under the new health law will obtain it through this government-funded program.

According to a recent survey conducted by the National Governor's Association and the National Association of State Budget Officers, state spending on Medicaid surged by 20 percent this year, following a rise of 23 percent in fiscal year 2011. Starting 2014, Obamacare will impose the expanded Medicaid eligibility requirements, which will cost states at least $118 billion. Minnesota will face costs of $745 million over five years. This will jeopardize states' ability to fund priorities like education and other critical programs.

In the coming weeks, I look forward to reading the Supreme Court decision in its entirety and continuing my work in Congress to identify meaningful solutions that will lower cost and increase access for all Americans without crippling the economy. To receive additional updates on legislative activity and my efforts on your behalf in Congress, please visit my website at www.kline.house.gov/issues .

Sincerely, JOHN KLINE Member of Congress