Perdue Warns Health Bill Too Expensive

After months of struggle, U.S. House Democrats unveiled sweeping legislation Thursday. The legislation aims to extend health care coverage to millions who lack it. Governor Sonny Perdue and other governors warned that states can't afford the current proposals coming from Washington.

Governor Perdue said Thursday that higher state taxes would be needed, unless Congress pays for the expansion of health insurance now under consideration.

Proposals are moving forward in Washington. On the steps of the U.S. Capitol, House Speaker Nancy Pelosi and other Democratic leaders announced their version of health care reform, saying it will extend coverage to millions more Americans.

"It reduces the deficit, meets president Obama's call to keep the cost under $900 billion over 10 years and it insures 36 million more Americans," said Rep. Pelosi.

Fourth District Georgia Congressman Hank Johnson said, "This historic bill is a once-in-a-lifetime opportunity to ensure that all Americans get quality, affordable health care."

Among other things, the plan expands Medicaid, the federal and state health program for low-income people.

In Georgia, Governor Perdue said an expansion of Medicaid rolls proposed earlier in the U.S. Senate could cost the state more than $2 billion in coming years.

Perdue acknowledged the need to improve access to health care, but warned that the state would face a huge financial burden unless Congress steps in to fund the proposed Medicaid expansion.

"Its fine for Congress to have an aspiration, as we share [the goal] of covering more people, but to expect the state taxpayers who cannot run a deficit. It will mean literally increased taxes for states, Georgia and other states, if we push a health care system saying you must cover all these and there's no money to pay for it," said Perdue.

Other governors raised objections as well, including Republican Governor Arnold Schwarzenegger, who has otherwise supported an overhaul of the health care system.

Tennessee's Democratic Governor Phil Bredesen also warned of the impact of Medicaid expansion on his state's budget.