Quickbrief: Medicaid Expan$ion Will Bankrupt the States

The passage of health care reform earlier in 2010 brought with it significant expansions in Medicaid, the joint State/Federal welfare program administered by the states. Even though the federal government will be picking up the tab for the first few years, ultimately, the states will find the share they are required to pay unaffordable.

(NCPA) The Patient Protection and Affordable Care Act (PPACA) is expected to add up to 16 million more Medicaid enrollees and will significantly expand eligibility for families with incomes up to 133 percent of the federal poverty level. The PPACA requires states to streamline their enrollment process — making it easier for eligible populations to enroll and retain Medicaid coverage. Initially, the federal government will pay 100 percent of the cost of the newly eligible, newly enrolled populations and 95 percent of costs through 2019. However, there are hidden costs that will strain state budgets. (Read more…)