President Obama proposes incentive in budget for states to expand Medicaid: 3 things to know

President Barack Obama’s administration is proposing a financial incentive for states that have refused to expand Medicaid under the Affordable Care Act, the White House said.

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Here are three things to know about the proposal.

1. President Obama’s fiscal year 2017 budget, to be released Feb. 9, will include a legislative proposal to provide any state that expands Medicaid the same three years of full federal financial support and gradual phase down that those states that expanded in 2014 received, no matter when the state opts in, the White House said.

2. That federal funding has previously only been available to states for the calendar years of 2014, 2015 and 2016, according to The Wall Street Journal. Under the ACA, the federal government pays for most of the cost of Medicaid expansion, however, states eventually must fund around 10 percent of the costs.

3. President Obama’s proposal comes as Louisiana is set to become the 31st state, plus Washington, D.C., to expand Medicaid.

 

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