The Impact of Not Expanding Medicaid

Currently, 21 states have said they will not expand Medicaid under the healthcare reform law, and those states will be losing out on $345.9 billion in federal funds over the next 10 years, according to a report from the Kaiser Commission on Medicaid and the Uninsured and the Urban Institute.

The analysis looked at how not expanding Medicaid could affect residents in those states, as well as broader financial ramifications. The two groups also looked at what would happen to states that opt to move forward with the expansion.

Here are some major findings from the report.

•    In addition to the 21 states that will not expand Medicaid, six others are still debating the decision. If those 27 states do not take action, as many as 6.4 million people will remain uninsured that could have been eligible for Medicaid coverage under the expansion.  

•    States that will expand Medicaid may incur some higher costs, but the report said reductions in uncompensated care and the federal matching funds "will greatly outweigh any potential increases in state expenditures."

•    For states that don't expand Medicaid, there could be further health coverage access issues. For people with incomes below 100 percent of the federal poverty line, they will not be eligible for subsidies in the health law's insurance exchanges or for Medicaid coverage.

To view the full report, click here.

More Articles on Hospitals and Medicaid Expansion:
Should Hospitals Support Medicaid Expansion? Saint Joseph Mercy CEO Garry Faja Responds
Report: Medicaid Recipients Most Satisfied With Insurance Coverage
Study: Medicaid Expansion Rolls Out "Welcome Mat" for Previously Eligible

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