GOP To Revisit Health Law Taxes, Others Cite Federal Budget Cuts As Risk To States

Some Republicans hope to reopen the fight over taxes in the Democrats' health law when Congress returns to work in November after the election, but Moody's says federal budget cuts are riskier to states' financial well-being than another costly part of the health law -- its Medicaid expansion.

Politico: GOP: Add Health Taxes To Fiscal Cliff Debate
Just what Congress needs during its year-end tax fight: another tussle over President Barack Obama's health care law. When lawmakers return to Washington after the November elections, some House and Senate Republicans want the party to fight to repeal billions of dollars worth of new taxes that will take effect next year to help pay for the 2010 health care overhaul (Sloan, 8/21).

Reuters: Budget Cuts More Risky To States Than Health Care Law
When it comes to health care, Congressional attempts to reduce the federal budget deficit pose a greater risk to U.S. states' finances than an expansion of the insurance program for the poor known as Medicaid, Moody's Investors Service said on Tuesday. In June, the Supreme Court struck down part of the 2009 health care reform law compelling states to cover more people with Medicaid, and many conservative governors embraced the decision as a way to opt out of the expansion (8/21).

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