In a just-issued report issued, Moody’s Investor Service warns that public hospitals and those providing loads of charity care could have revenue – and therefore bond problems – in states where legislatures don’t opt to increase Medicaid enrollment under Obamacare.
Moody’s reasoning is simple: less money means more risk for lenders. More risk potentially can mean worse bond ratings. And worse bond ratings can theoretically mean higher payments on debt.
That’s not the primary reason Gov. Rick Scott wants to expand Medicaid, which could give the state a $6.7 billion shot in the arm over three years. But it helps reinforce his argument and the argument of other conservatives, including former Florida House Speaker Tom Feeney, who now heads the Associated Industries of Florida.
Feeney called on the Legislature to look at the report. They probably will, and then go back to refusing to accept the Medicaid money, particularly in the conservative House, where “Obama” is a four-letter word.
Earlier today, we asked Scott about the report and Medicaid. Here’s what he said.