Medicaid Opt-Out Could Cost States Money
June 5—Since the US Supreme Court ruled on the Affordable Care Act in 2012, 14 states have chosen to opt out of expanding their Medicaid programs. This could be a costly decision, according to an article in the June 2013 issue of Health Affairs, which describes the work of two RAND corporation researchers who used microsimulation to analyze how opting out of the Medicaid expansion would affect coverage and spending.
The researchers estimate that 3.6 million fewer people would be insured in the 14 states that chose not to expand Medicaid, and that federal transfer payments to those states could fall by $8.4 billion. According to the researchers, those states could also spend some $1 billion more on uncompensated care than they would if they participated in the expansion.
Publication Date: Wednesday, June 05, 2013