Report Released on Cost to States of Not Expanding Medicaid This week there have been several news reports about a new study released by the Rand Corporation about the cost to states of not expanding Medicaid under the Affordable Care Act. Here is a story that appeared in the Insider (state news service) on June 4 about this report. A new study from the Rand Corporation suggests that states, like North Carolina, which forego federal Medicaid expansion will suffer not only because of the loss of federal dollars but also pay more for uncompensated care. The study examined federal Medicaid payments, the effects of the expansion on insurance coverage and state spending on care for the uninsured. It concluded that the 14 states that have chosen not to expand Medicaid would lose a combined $8.4 billion annually, plus pay another $1 billion for uncompensated care. It also estimated that an additional 3.6 million people would go uninsured. "State policymakers should be aware that if they do not expand Medicaid, fewer people will have health insurance, and that will trigger higher state and local spending for uncompensated care," said study co-author Carter Price. The study examined the effects on the 14 states collectively and not individually. North Carolina legislators voted earlier this year to not accept Medicaid expansion even though the federal government would pick up the full cost for three years and 90 percent in the immediate years to follow. Based on earlier expansions of Medicaid, the study also estimated that an additional 19,000 deaths would occur because of the decisions in those states. (Scott Mooneyham, THE INSIDER, 6/04/13). It is projected that Medicaid expansion would have provided health insurance coverage to over 500,000 low-income North Carolinians. Expansion would have brought more than $15 billion in federal funds to the state and it was estimated that the state would have saved $65.4 million over the first eight years of expansion. In addition to the uncompensated care issue noted above, the American Academy of Actuaries estimates that premiums for private insurance will be at least 2% higher in states that do not expand Medicaid due to cost shifting and unhealthier people buying subsidized insurance. The N.C. General Assembly can reverse the decision it made in February at any time to not expand Medicaid in our state.
Posted on: Sun, 09 Jun 2013 00:18:54 +0000
Trending Topics
Recently Viewed Topics
© 2015