California Healthline: States That Opt Out of Medicaid Expansion Will Lose Billions in Funds

Not participating in the Medicaid expansion under the Affordable Care Act would mean states would lose out on billions in federal funding and millions fewer low-income residents would become insured, according to a study published Monday in the journal Health AffairsThe Hill‘s “Healthwatch” reports (Baker, “Healthwatch,” The Hill, 6/3).

Background on ACA’s Medicaid Expansion

Under the ACA, all U.S. residents with incomes up to 138% of the federal poverty level would have been eligible for Medicaid. However, the Supreme Court ruled that states could choose whether to participate in the expansion.

For states that opt in, the federal government will cover 100% of the cost of the expansion until 2016, and after that the federal share will decline gradually until it reaches 90% in 2020 (California Healthline, 3/15).

Although several Republican governors have voiced their support for the Medicaid expansion, others have outright refused to implement it, often citing additional costs to the state (“Healthwatch,” The Hill, 6/3).

Study Details, Findings

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