States Saying No to 'Obamacare' Could See Downside

By: AP Email
By: AP Email

FILE - In this July 6, 2012 file photo, President Barack Obama signs the Surface Transportation Bill, in the East Room of the White House in Washington. A new law reduces by billions of dollars what companies have to contribute to their pension funds, raising concerns about weakening the plans that millions of Americans count on for retirement. But with many companies already freezing or getting rid of pension plans, critics are reluctant to force the issue or even make much of a fuss. (AP Photo/Pablo Martinez Monsivais, File)

WASHINGTON (AP) - There's a potential downside for states that say "no" to the new federal health care law.

For Texas Gov. Rick Perry, for example, turning down the law's Medicaid expansion could also mean turning away as many as 1.3
million uninsured people. That's nearly half of those who could be
covered in his state.

Gov. Chris Christie not only would be saying "no" to President Barack Obama, but to as many as 245,000 uninsured New Jersey residents as well.

The Supreme Court gave governors new flexibility to reject the law's Medicaid expansion.

But states risk leaving behind many of their low-income uninsured residents in a coverage gap. It's being called the new "doughnut hole" - similar to a Medicare gap faced by some seniors.

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