The February 3rd Los Angeles Times has an article by Noam Levey on Obama Administration attempts to help states cut their Medicaid spending. Levey reports:

The Obama administration is particularly concerned with maintaining state Medicaid programs because under the new healthcare law, these government insurance plans are expected to provide a foundation for guaranteeing coverage to all Americans beginning in 2014.

First of all, Obamacare does not gurantee coverage to all Americans. According to the Centers for Medicare and Medicaid Services 18 million Americans will pay $33 billion in penalties for failing to comply with Obamacare’s individual mandate and yet still have no health insurance. Also, Medicaid not only provides “a foundation” for Obamacare, over half of all health insurance gained through Obamacare will be accomplished through an expansion of Medicaid. Finally, the Obamacare Medicaid expansion is a huge administrative burden on the states: The Heritage Foundation’s Ed Haislmaier and Brian Blase found that just the administrative costs of the Obamacare Medicaid expansion will cost almost $12 billion by 2020.