The massive Medicaid enrollment expansion required under the healthcare reform law will not costs states as much as they originally feared, according to a new analysis from the Kaiser Family Foundation.
Between 2014 and 2019, the federal government will pay 95.4% of the cost of the Medicaid expansion, or roughly $443.5 billion, according to the Kaiser report. During that time, states will be on the hook for $21.1 billion. After 2020, the federal government will pay 90% of the costs. Roughly 15.9 million more people are expected to enroll in Medicaid before 2019 as a result of the reforms, according to some Congressional Budget Office estimates, reducing the number of uninsured individuals by 11.2 million. Reduced state spending on uninsured individuals could in some states compensate for the increased cost of the Medicaid expansion, according to the Kaiser report.
Despite the seemingly good news, many states still believe the cost of expansion is too great. Likening the situation to finding a pair of $200 shoes on sale for $20, Alan Weil, executive director of the National Academy for State Health Policy, told NPR: If “you’re not sure you can come up with the 20 dollars, it doesn’t really matter what a good deal it is.”
