The New York Times reported last week that New York Governor David Paterson is deeply concerned about President Obama’s health care reform and its effects on his state’s already massively imbalanced budget. This is because both the House and Senate versions of the bill require states to pick up at least a portion of the cost for newly enrolled Medicaid beneficiaries.

Besides the dangers associated with government-provided health care, there is another reason why New Yorkers should be concerned, and it’s concisely expressed by New York’s Lieutenant Governor Richard Ravitch. He said, “We’re being penalized for our generosity.”

That’s an amazing statement. It’s true that New York has one of the most generous Medicaid programs in the country. But it’s almost criminal that a state government official can give away massive amounts of health care services while at the same time complaining that he actually has to pay for it. Of course, New York is generous! Everyone is generous with other people’s money.

There is another interesting twist in the health care debate taking place in Washington. Yesterday, Politico reported on a new proposal by Senate Majority Leader Harry Reid, in which he seeks to grant states the ability to “opt out” of the government-run health insurance plan that the House and Senate are considering. This is merely a new tactic to get the government plan back into the legislation after being systematically rejected by economists, the Congressional Budget Office, and the American people last summer. As the Heritage Foundation noted this morning, the state opt-out would bring new burdens to states that choose to reject it and present new bureaucratic boundaries for those that do not.

Health care is turning into a big game of hot potato between the states and the federal government. At least between those who acknowledge somebody actually has to pay for it.

Carl Oberg contributed to this article

Write to tdoheny@afphq.org