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Saturday, August 27, 2011
Report: Abercrombie’s effort to dump Prepaid Health Care Act will drive Debts to 90% of GDP
By Andrew Walden @ 2:33 PM :: 3924 Views :: Health Care

by Andrew Walden

The Hawaii–born babies of today will carry a combined State and County debt equal to 90% of production before they graduate high school. That’s the bottom line in a new report from the Mercatus Center at George Mason University.

The authors calculate Hawaii’s combined State and County debts—including pension obligations—at $22.7 billion.

While Gov. Abercrombie charges headlong towards dismantling Hawaii’s Prepaid Healthcare Act in favor of the inferior coverage provided by Obamacare, the authors warn:

“the key driver of increasing state and local expenditures is health-care costs, especially Medicaid and subsidies for health-insurance exchanges under the Patient Protection and Affordable Care Act of 2009.”

Can Hawaii escape the trap of Abercrombie’s ideology and preserve the Prepaid Health Care Act?

Debt loads at 90% of GDP are described as a “tipping point” by economists.

Unless Hawaii sticks with Prepaid and blocks Obamacare, we will reach 90% debt in 2027.

---30---

Full Report: The Fiscal Health of U.S. States - Mercatus Center

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