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Medicaid Expansion

Chaaron Pearson on Thursday, January 10, 2013 at 12:00:00 am

At the start of 2014, Medicaid is to be expanded due to the Affordable Care Act (ACA) to people with incomes at or below 133 percent of the federal poverty level. That expansion was expected to take in approximately 16 million uninsured people nationwide.

However, the Supreme Courtís ruling allows states to opt-out of the expansion. Thus, many governors across the country have said that their state will not expand Medicaid coverage as outlined in the ACA. This also means that those states will not be receiving the federal dollars tied to the expansion, as states that agree to the Medicaid expansion will have 100 percent of the costs paid by the federal government for the first three years.

Fiscal concern begins after the first three years when states are expected to shoulder up to 10 percent of the costs. Those increased expenses in that fourth year and beyond could strain already costly Medicaid programs.

Chambers will be watching this issue closely as the time comes for state legislatures weigh in on the issue.  Join the conversation about Medicaid expansion at the next Government Relations division call on January 15, 2013. Details found at acce.org.

More reading:

For a snapshot across the country, visit advisory.comís map of Medicaid positions.

To read more about ACAs impact on Medicaid, visit Medicaid.gov

Stateline.org has a number of articles about Medicaid expansion:            
Court Lets States Opt out of Medicaid Expansion
For Some States Medicaid Expansion May be a Tough Fiscal Call
Obama Win Means Big Health Care Decisions for States

Tags: state budget, ACA, Affordable Care Act, Medicaid, Medicaid Expansion, Obamacare, Public Policy

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