The health care reform bill that is being processed by the U. S. Congress is a cause of anxiety for state governments. The states fear that the new health reform will subjugate their power and add greater costs to their already extended budgets.

The plan will grant funds to states to help them in upgrading the healthcare industry. The arrangement aims at encouraging more American citizens to obtain health insurance. It plans on covering more people under the Medicaid system, which is designed for the economically backward and is administered by the states and the U. S. Government.

While some states may take legal action if the healthcare plan is approved, others are making an attempt to pass their own laws and constitutional amendments, to maintain status quo and keep health insurance non obligatory.

Robert Zirkelbach, Press Secretary for America's Health Insurance Plans said, "That is going to have a devastating impact".

According to Congressional Budget Office, the plan aims at reducing $117 billion in federal spending by 2019. Most reductions are aimed at high expenditure areas.

Many states will be affected if this plan gains approval. In Florida for example, seniors in Medicare Advantage will see higher premiums, reduced benefits, and many seniors will lose benefits entirely.