Image: jpo under CC 3.0
Across the country, states are struggling to balance their budgets. (Unlike the federal government, they don’t have the luxury of running a deficit.) This generally requires some combination of raising revenue through taxes and cutting spending programs.
The Republicans that triumphed in the midterm elections are adamant about only using the former. In Texas, they are even considering cutting the affordable health insurance program for the poor, Medicaid. Although the program itself is largely run by the federal government, state governments contribute.
According to supporters of the withdrawal, Texas would launch its own health plan for the impoverished. Many aren’t holding their breath. There is also speculation that the proposal is at least partially intended to spite the Obama administration in Washington for getting involved in individual Texas health insurance matters.