Obamacare Pros and Cons: States That Rejected Medicaid Expansion to Pay $152 Billion in Taxes, Will Benefit States with ACA
States that have not adopted the Affordable Care Act, or Obamacare, could pay up to $152 billion for the benefit of states with the ACA.
According to McClatchy data from the Urban Institute, the 23 states that rejected the ACA and did not expand Medicaid could pay the $152 billion by 2022, and in some states it will affect taxpayers. Approximately $88 billion would come from five states that have yet to expand Medicaid -- Florida, Georgia, North Carolina, Texas and Virginia.
The $152 billion would benefit and extend programs for the other 27 states with Medicaid expansion, including Washington, D.C. Since last October, the Medicaid expansion has helped provide more than 7.2 million people with health care insurance coverage. Within the 27 states and Washington, D.C., an individual adult with an income of $16,105 per year is eligible for Medicaid coverage. Families of four with a total income of $32,913 are also eligible for Medicaid.
The states that have yet to expand Medicaid could benefit from the $152 billion, but only if they expand Medicaid eligibility. Tony Pugh of the McClatchy Washington Bureau noted the 23 states would also split nearly $386 billion in federal Medicaid funding from 2013 to 2022. The money will cover medical costs for new Medicaid enrollees from 2014 to 2016 and "no less" than 90 percent of the enrollees' subsequent costs.
"Here is money that is pretty much there for the asking, and these states are turning it down. And in the meantime, their taxpayers are paying taxes that fund expansions in states that are moving forward. It just doesn't make any sense," said New York University's Dean of the Robert F. Wagner Graduate School of Public Service Sherry Glied.
"This additional use of medical services not only brings more federal dollars, but hospitals, physicians and pharmacies would likely hire more people, keep longer hours and probably raise wages. All of which leads to indirect spending and subsequent rounds of spending that generate tax revenues and, in general, the expansion of the economy within states," said University of Alabama at Birmingham's health economics professor Michael Morrisey.
Some states have voiced concerns over paying the $152 billion. Georgia Republican state Rep. Jason Shaw said his state has been financially struggling to support the existing Medicaid system. Medicaid expansion in Georgia would increase the state's budget by $2.5 billion over the next 10 years.
"It's really tough times for the state," added Shaw. "It just wouldn't be fair to the taxpayers if we just accepted the expansion."
Expanding Medicaid coverage across the 23 non-Medicaid-expansion states would increase their state budget costs by $28.8 billion between 2013 and 2022.
The ACA provides approximately 10.2 million uninsured Latinos with health insurance coverage. HHS noted 8.1 million of eligible uninsured Latinos may qualify for either tax credits to purchase insurance coverage in the Health Insurance Marketplace, Medicaid or the Children's Health Insurance Program.
The states with the largest uninsured Latino population include two states that have not expanded their Medicaid programs: Florida and Texas. As Latin Post reported, as of February, 2.5 million Texans and 1.1 million Floridian Latinos are uninsured.
The largest state with uninsured Latinos is California, with 2.8 million, followed by New York's 500,000 and Arizona's 400,000.
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