Kentucky is an Obamacare hotbed. Politico calls the state "an Obamacare bright spot." It's the only Southern state to go all-in on the Affordable Care Act. The numbers for enrollees are through the roof. But lurking in the shadows of all of this success claimed by the White House is the stark reality that these newly-insured patients are going to have nowhere to go to receive care.

According to The Courier-Journal, Kentucky hospitals are facing billions of dollars in cuts, they are being forced to lay off staff, some medical services are no longer being offered, and others are shutting their doors.

The biggest blow came by way of the Medicaid expansion in the state. Most of those who enrolled in Kentucky took full advantage of the expanded Medicaid, despite predictions by the Congressional Budget Office to the contrary. And because this government insurance has such low rates of reimbursement to hospitals (Medicaid only paying 82% of actual costs), officials have issued the following warning in a release called "Code Blue" by the Kentucky Hospital Association:

Kentucky hospitals will lose more money under the Affordable Care Act than they gain in revenue from expanded coverage…

While Kentuckians should be proud of this achievement [more people insured], it is also important to understand another part of the story: The government's success in expanding health coverage has come at a significant cost to Kentucky hospitals.

The "Code Blue" report states that hospitals can expect to lose $7 billion over the next ten years. There have already been nearly 8,000 jobs lost and some of the more harder hit hospitals in rural areas are having to close their doors permanently. There are many factors stated as contributing to this loss. One is higher deductibles and co-pays for some of the newly insured that will increase hospital's bad debt because these patients won't be able to afford to pay their bills. The report also states that though hospitals will see $506 million more in Medicare money, they will spend $617 million caring for those patients.

And yet, the success in sign-ups alone is enough for President Obama to "delight in its triumphs," as Politico states. But with the November gubernatorial race looming that could see Tea Party Republican Matt Bevin take over for outgoing Democrat Gov. Steve Beshear, the fate of the ACA in the state hangs in the balance.