Ben Nelson' Folly and the local corollary

When Robert Fulton worked on the famous steam-powered boat nearly 2 centuries ago, He was ridiculed by passers by who called the contraption Fulton's Folly. Ben Nelson has entered into his own folly with his agreement to sign on with the Senate Health Care Bill in his own right, but unlike Fulton, who ushered in a new era of advanced transportation, Nelson's will remain doomed to failure.
Reports have surfaced that Ben Nelson has obtained a sweetheart deal for Nebraskans in exchange (bribe) for his vote on Health Care. Unlike Louisiana who got a one time 300 million payment for state medicaid coffers in exchange for Mary Landrieu's support, Nebraska will not have to pay the increases in medicaid. This is because Ben Nelson auctioned off his vote for the provision. According to the terms, Nebraska will be getting a shield of sorts against fractional increases in medicare costs forever (did i say forever?).

So what? The federal government pays for all kinds of programs that states depend on. Holding state expenses for Medicaid flat is really a budget gimick. Here is why. The government will see that the claims for Medicare/Medicaid will begin to increase. Normally, these cost increases are disproportionately passed to the states. Because Nebraska has this, "Sweetheart Deal," the federal government will have to bear the additional costs, thus allowing the state to hold its health budget line.  Other service needs that are met by acts of Congressional appropriation will certainly increase due to inflation or other unforeseen reasons.  Here is the rub: If the government has to pay more for health related costs, it will find ways to reduce other federal support for other programs which the state relies on to provide services to its citizens. The state, having little choice but to maintain its own infrastructure, will now be forced to either cut programs and services, or raise taxes and fees in order to maintain access levels at planned levels. Everyone knows where the taxes come from.. your homes, your vehicles, boats and businesses, and here in Sidney, taxes on a good night's stay or a meal on the town.

In reality, the local taxes that were put into effect on hotels and restaurant businesses are a local example of what the federal government is going to do to Nebraska. The state took sales taxes to fund economic development efforts in other parts of the state, and the locality, forced to make up the difference, created a new tax to extract the wealth it needs to survive.

Freezing state medicaid/medicare costs is a red herring that hopefully allows Nelson to say... look what I did for Nebraska. The question he should be asking is... What have I done TO Nebraska.