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

We're back on the road again this week with our anti Cap-and-Trade “Cost of Hot Air” Tour. This time we're in my home state of South Carolina educating activists about the dangerous effects Cap-and-Trade would have on the South Carolina economy and what they can do to stop this job killing, tax increasing legislation.

Last night we had a great event in Spartanburg with over 200 activists urging Senator Lindsey Graham to vote NO on Cap-and-Trade. One of our speakers was Walter, a West Point graduate and tax payer advocate, still fighting the good fight at 80 years old. Afterward, I had dinner at my mom and dad's house!

This morning we had a good event in Columbia with another 200 plus activists. As we do at all of our events, we asked our activists to call the senator's office and make their voice heard. Almost everyone called to tell Senator Graham to vote NO on Cap-and-Trade.

Next up on our tour is Mount Pleasant, South Carolina tonight at 5:30PM.

Pictures from Spartanburg:

Pictures from Columbia:

Last night on CBS’s 60 Minutes, Steve Kroft investigated the $60 Billion (yes that’s billion) in Medicare fraud that takes place every year in this country. This black market is so pervasive that it has taken over cocaine as the major criminal enterprise in south Florida – think “Scarface,” but operating in your local pharmacy. The schemes are quite simple according to the FBI: rent a cheap storefront office, find or create a front man to get an occupational license, bribe a doctor or forge a prescription pad, and obtain the names and ID numbers of legitimate Medicare patients so you can bill phony charges. After submitting the form, criminals receive the Medicare reimbursements directly into their bank accounts from Uncle Sam. With such substantial fraud, you would think there would be millions of outraged victims – the problem is that the victim is the American taxpayer, who has until now known little of this underground enterprise.

This report exposed the tremendous tendency for corruption and inability of the federal government to control one program aimed at health coverage. But fraud and corruption are only part of the failed system that is Medicare – the other is basic accounting. In this morning’s Washington Post, Robert J. Samuelson compares the troubles with Medicare to the “public option,” which he calls a “mirage,” that is gaining strength in Congress. While Medicare is a monopoly, the proposed government-run health insurance plan seeks to attract investment capital to subsidize the enormous costs that it will incur (such as marketing campaigns). If this fails, which it undoubtedly would, Congress would step in to bail it out.

When asked why it has taken Medicare so long to figure out they were being scammed, Attorney General Eric Holder told CBS’s Steve Kroft, "I think lack of resources probably. And then I think people I don't think necessarily thought that something as well intentioned as Medicare and Medicaid would necessarily attract fraudsters. But I think we have to understand that it certainly has."

Good intentions, it seems, make sobering realities all the more painful.

Write to tdoheny@afphq.org

AFP President Tim Phillips is hosting a live video chat and answering your questions about the health care debate and other AFP efforts today at 12PM EST. Send him a Facebook message with your questions by clicking here or send an email to mailbag@afp-mail.com. To watch the chat live at noon click here: http://www.ustream.tv/channel/afp-mailbag

President Obama, Speaker Nancy Pelosi, and Majority Leader Harry Reid think you and I are tired and losing interest.  The New York Times and other media outlets are writing that the grassroots fire burned out in August and September.  

Talking to many of you in recent weeks, I know that's not true.  But with the health care battle at a decisive juncture, We need to take a crucial step. 

Americans for Prosperity is asking you to make a "Congressional House Call" at noon on November 5 to tell your Senator or Congressman to vote NO on the Obama/Pelosi/Reid health care takeover.

As I travel the country on our Patients First bus tour and other events, folks ask me, "Tim, I've emailed and called my representatives, but what more can I do to get their attention?"  This is a big way for you to get their attention.  Join fellow freedom fighters in standing up one more time by going to their in-state offices on November 5 with a simple message -- "Keep your hands off my health care.  Vote NO." 

We need you all to please take 3 steps:

1.  CLICK here to let us know you're willing to stand up for your freedom by walking in to the district office of your Senator or Congressman on November 5. You can also CLICK HERE to go directly to a page that lists all of the local offices within your state.

2.  Please forward this information to at least 5 of your family and friends by

CLICKING here.  We need as many Americans as possible to take a stand, and you are the best recruiter because they know and trust you.

We see the hypocrisy and deal-cutting coming out of Washington.  You know there's $345 billion in brand new welfare spending via Medicaid expansion in the Senate health care takeover bill.  And the fact that Majority Leader Harry Reid is exempting his own state from having to pay the state share of the new welfare program. 

Just yesterday, Speaker Pelosi and her friends in the House came up with a new way to try and sell the so-called "public option," which in reality is the government destroying private health insurance.  They called it just another form of Medicare! 

We've got to show Team Obama/Pelosi/Reid that Americans like you are still in the fight, still focused, still willing to stand up and be counted.

Our goal is simple: on November 5 have activists like you show up at key Senate and Congressional offices in your state with your own message telling them to keep their "hands off your health care."  Patients First, our health care project, will provide a great resource for you to take on your "House Call."

November 5 is two weeks from today.If you're willing to be a part of the Congressional House Call please CLICK here and let us know you're being a part of this crucial project. 

To answer your questions about our Congressional House Call project, I will be hosting a live video chat on Ustream.com this Friday at 12 Noon ET. Please email questions you have about the Congressional House Call project or about our other efforts to mailbag@afp-mail.com. You can also message me on Facebook with your questions by going here and clicking the "Send me a Message" tab.

A lot has been sacrificed already -- emailing and calling your members of Congress, attending tea parties and bus tour rallies, contacting your friends and family to get involved.

Now, we need you to take another crucial step on November 5 to protect your freedoms.