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Jun 29

States Fall Victim to Million Dollar Credit Card Style Scam

States Fall Victim To Million Dollar Credit Card Style Scam

by Sarah Rollins

Everyone with a mailbox has known what it is like to be besieged by credit card mailings. They all promise unbelievably low interest rates, no annual fees, and phenomenal rewards; at least, that is what the large bold print promises. The large letters do not lie, but they do omit a few fine details. To know reality, one must go deeper, because the truth lies far below the massively megalithic print in font of a microscopic size. Now, what little bits of information are tucked away in these Lilliputian letters? Well if you pull out your electron microscope, you are able to view all the key information that the large blaringly bold font have failed to mention. The most relevant of these points being the simple phrase “introductory offer.”

Just like in romantic relationships, the introductory period for credit cards are bedazzling periods where everything is magical and filled with wonder. Unfortunately, the introductory period comes to an end and is followed by the real deal. All of a sudden, you go to move and feel a tug on your arms and legs. You look to see what impediment is hindering your locomotion and discover that bindings of a cotton, nylon, or hemp nature have ensnared your limbs. Much to your fright and lament, you have discovered the strings that are attached to the deal.

Many unsuspecting victims have felt the sting in their hand as they have reached for the cheese in the mousetrap of credit card offers. You would think that after years of such ethically dubious marketing people would wise up, but the exact opposite is true. Recently, 22 states (AR, CA, CO, CT, DE, HI, KY, IL, MA, MD, MN, ND, NH, NJ, NM, NV, NY, OR, RI, VT, WA, WV) have fallen prey to the “introductory offer” trap. These duped states have all agreed to expand Medicaid coverage to individuals that are not in poverty. Why would they agree to pay for the healthcare of those not in poverty? Is it because they have extra money lying around? Nope, most of the states are experiencing financial nightmares. Kentucky alone has a pension liability of 33.7 billion dollars; hardly the time to increase spending. Then why have they decided to act in such a financially foolish fashion? They have agreed to the expansion because of the introductory offer.

For the first few years, these expanding states will not have to pay anything. The taxpayers will still have to pay for it with their federal taxes, but the state budgets will not have to cough up any cash; at least, not until 2017, when the introductory offer is over and real deal begins. In 2017, states are forced to start paying 5% of expenses. In Kentucky alone, the state will have to pay an additional 32.6 million dollars a year. Where are they going to find the money when Kentucky cannot even pay for their pension system? In 2020, gasoline is thrown on the fire as the state contribution is scheduled to increase to 10% of expenses. This increase is expected to cost Kentucky 151.2 million dollars in 2021.

Medicaid expansion will result in states going further in debt as they provide additional services that they cannot afford. Now do not misunderstand me, I would love to be able to provide free healthcare to every single person in the United States. Unfortunately, there is no such thing as free healthcare; someone always has to pay. States might not have to pay in the introductory period, but they surely will when the raw deal kicks in

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