Perry’s announcement is an especially harmful move because Texas will benefit more from the Affordable Care Act than any other state... After five years of the Affordable Care Act, Texas would be able to insure 1,798,314 more Americans under the Medicaid expansion alone – more than any state in the nation.
Forget the fact that Obamacare's expansion of Medicaid would require the state to cover everyone whose income is 133% of the poverty line or less and doesn't reimburse states for those increased costs for long. For the first two years the federal government would reimburse the states 100%, for the next three years that figure drops to 95%, after that states will be one their own.
That leaves a huge unfunded burden on the states after just 5 years. Needless to say, that's one very good reason not to enact the medicaid expansion mandate. However, Texas has one even better reason.
According to ThinkProgress Texas would be able to extend coverage to 1.7 million more uninsured living in Texas. According to 2004 data, there were 1.2 million illegal immigrants living in Texas, compromising 5.4 percent of the total population. That number has only increased over the last 8 years, as of 2010 illegal immigrants made up 6.0 percent of the Texas population.
By complying with the Obamacare Medicaid expansion, Texas would be required to use tax payer dollars to fund free medical care for illegal immigrants.