Medicaid Expansion Will Cost States Even Less Than Expected


From the Center on Budget and Policy Priorities:

CBO now estimates that the federal government will, on average, pick up more than 95 percent of the total cost of the Medicaid expansion and other health reform-related costs in Medicaid and the Children’s Health Insurance Program (CHIP) over the next ten years (2015-2024).

States will spend only 1.6 percent more on Medicaid and CHIP due to health reform than they would have spent without health reform. That’s about one-third less than CBO projected in February. And the 1.6 percent figure is before counting the state savings that the Medicaid expansion will produce in state expenditures for services such as mental health and substance abuse treatment provided to the uninsured.

The federal government will cover 100 percent of the cost of expanding Medicaid until 2017 and, while it was projected that the government would cover 90 percent of the cost beyond that time period, the Congressional Budget Office (CBO) now projects that the federal government will cover more than 95 percent until at least 2024.

Expanding Medicaid was already a pretty good deal for states given that the federal government will cover the entire cost for several years and the overwhelming majority of costs thereafter, but the deal just got sweeter.

None of this matters to Republican lawmakers in a number of states. They’re still clinging to the idea that expanding Medicaid is a road to ruin.

(ht Steve Okin Attorney at Law)
  • Ipecac

    These guys would be against expanding Medicaid even if it would make money for them. Oh, wait, it will.

    It can’t be said often enough. They’re pathological.

  • Sabyen91

    A Scott Walker ad has the sheer audacity to not only tout “job creation” but “more people have healthcare.” My jaw hit the floor when I saw that ad.

  • Christopher Foxx

    They’re still clinging to the idea that expanding Medicaid is a road to ruin.

    And not ruin as in “it will create a financial hardship for my state”, but ruin as in “it will mean giving credit to a Democrat”.

    They aren’t opposed because they fear the consequences for their constituents. They’re opposed because it hurts their ego.

    • Draxiar

      They also can’t put that ACA feather in their cap either for future elections. In fact, their mocking name of “Obamacare” is now a fiery spear that will harpoon them for years to come as it grows in popularity.

      • Christopher Foxx

        Yeah. They really, really blew it with that one.

        They could have taken the “Nice to see Democrats adopting Republican ideas and trying to take Romneycare nationally” route to recapture the White House. Instead they forever attached Obama’s name to what is an increasingly popular program.

  • GrafZeppelin127

    “They’re still clinging to the idea that expanding Medicaid is a road to ruin concession that Obama is not evil, Obamacare is not a disaster, and that they are and have always been horribly, horribly wrong.


  • muselet

    Rs are refusing what Charlie Pierce calls Free Money! because The Black Guy wants to give it to them.

    Government by hissy-fit. Great idea.


    • ninjaf

      That may explain why they can’t accept it. In their world, The Black Guy takes the money from the government (in the form of a welfare check) but does not have the right to hand it out.

      • muselet

        It’s become impossible for the Rs to have an ordinary disagreement over policy or politics with the administration.

        That’s because the GOP has internalized every insane accusation made against Barack Obama, starting with the birth certificate and Bill Ayers and descending ever deeper into madness since. At this point, Rs can’t accept the legitimacy of anything the Obama administration does because that would imply the legitimacy of the Obama administration itself.

        It’s a terrible way to run a country.