Medicaid expansion carries the additional cost of administrative expenses, according to state Medicaid directors. They gathered this week to discuss ways to deal with a proposed expansion of the Medicaid
program under healthcare reform legislation.
Both the House and Senate versions of healthcare reform
contain mandated expansions of state Medicaid programs that would add millions
of enrollees across the country. One major and often overlooked cost of the
expansion would be the administrative expenses that come with coordinating such
an expansion, the Medicaid directors said. More
personnel and new technology would be needed to coordinate the expansion, they
say. State lawmakers, who already are grappling with budget
problems, largely have been worried about the cost of providing
care to these new beneficiaries. States have been asking the federal government
to extend enhanced Medicaid funding provided by the American Reinvestment and
Recovery Act until revenues recover.
The Medicaid directors also discussed ways to coordinate
the program with the new health insurance exchange being proposed in Congress.
The 2009 fall conference of the National Association of State Medicaid
Directors wrapped up Wednesday. More info about the NASMD fall conference can
be found at www.nasmd.org.