More Obamacare problems

Business Week reports:

States faced with unprecedented declines in tax collections are cutting benefits and payments to hospitals and doctors in Medicaid, the health program for the poor paid jointly by state and U.S. governments. The costs to hire staff and plan for the average 25 percent increase in Medicaid rolls may swamp budgets, said Toby Douglas, who manages the Medicaid program for California, which hasn’t joined the lawsuits.

To keep state budgets in balance, states are cutting back on Medicaid, now the Congress is demanding they increase medicaid funding by 25%. This is impossible, there is not enough growth in medical professionals unless some drastic economies of scale are found. The squeeze on finding new doctors and nurses will drive wages up at a hyperinflationary rate.