States could lose Medicaid expansion incentive funds; fallback programs considered

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The latest conversations surrounding expanding Medicaid coverage involve considerations of pulling funds bookmarked for encouraging expansions and instead using them to create a federal option.

The idea, which comes from Democratic lawmakers but does not have partywide support, is an effort to circumvent states that have historically held out on Medicaid expansion, according to Bloomberg

One supporter of the plan, Sen. Raphael Warnock (D-Ga.), told Bloomberg that he thinks it's clear that the reasoning of state lawmakers holding out against expansion are "political, shamelessly and utterly political."

On paper, the plan would create a Medicaid-like alternative in holdout states in 2025, with no-cost Obamacare plans from 2022-2024.

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