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Republicans Choose Bailouts Instead of Medicaid Expansion

Republicans Choose Bailouts Instead of Medicaid Expansion

One of the key components of the Affordable Care Act is the expansion of Medicaid. As of January 1, 2014, people aged 19-64 who fall below the threshold of 138 percent of the federal poverty limit (approximately $27,000 for a family of three) can get health coverage. The bill required states to expand coverage under Medicaid and the federal government would cover the costs of hospitals and doctors taking on new patients. However, when the Supreme Court upheld the ACA in 2012, it also said that states had the right to opt out of the expansion. In all 25 (mainly Republican) states did exactly that.

While the refusal may have won some political points with the base, states are already beginning to see fallout from their political ploy. Many of those that opted out are also having the highest rate of uninsured. This is causing residents to fall into a coverage gap – meaning they don’t qualify for a federal subsidy to purchase private insurance, but make too much to qualify for Medicaid. The hardest hit are those in rural areas, where providers are limited. Rural hospitals are also suffering because they are not getting the extra subsidies provided under the ACA to treat indigent patients.

Politicians are facing political fallout as many of these hospitals and clinics face closing their doors. Some are looking to doing anything but adopt the ACA. One option is to reimburse Medicare costs – but instead of using the money from the federal government, they are going into state funds.

In other words, they are looking at bailouts.

South Carolina has already agreed to reimburse some hospitals 100 percent of the Medicaid costs for troubled hospitals, at the cost of $90 million dollars (more than half paid by state taxes). In Georgia, estimates for Grady Memorial Hospital in Atlanta estimates that federal Medicaid cuts will cost it $141 million dollars. Republican Governor Nathan Deal has rejected the Medicaid expansion, but is facing an election year in which the Democratic opponent is state Sen. Jason Carter, grandson of Georgia’s favorite son President Jimmy Carter. With about 60 percent of Grady Memorial’s patients on Medicaid, the legislature is considering measures costing in the “tens of millions” of dollars to help.

Mississippi Gov. Phil Bryant has been pressured by state lawmakers to agree to an expansion but has thus far refused. His reasoning is that the federal government might run out of money and not be able to keep up its end of the bargain of reimbursing states. Instead, he is seeking an additional $4.4 million dollars to make up for the Medicaid cuts.

It is difficult to say if the states are saving money by doing this, but most agree that this can only be a stop gap measure and not a long term solution. Under the ACA, states have to cover 10 percent of the initial cost of implementation, and then they are reimbursed for the Medicaid expansion costs at 100 percent during the first three years, after which they cover 90 percent of the costs. Furthermore, by participating in the ACA the state’s residents would also be eligible for federal subsidies to purchase private insurance, further lowering costs. Experts say that participating in the ACA’s Medicaid expansion is hard to compete with from a financial perspective due to the generous reimbursements.

Some states are beginning to understand this.

Five states that initially refused are reconsidering their participation in the ACA and the Medicaid expansion. Missouri, New Hampshire, Pennsylvania, and Utah have all begun to developing plans. Newly elected Democratic Gov. Terry McAuliffe has said that he will move forward with a plan in Virginia, which had previously opted out under the previous Republican governor. All of these plans are in various stages of development and still require passage through the legislature, after which they will also need federal approval. Should all of these plans go forward, it would mean that more than half the states in the nation would have expanded access to affordable health insurance under the Affordable Care Act.

Only time will tell if the remaining ones will choose good governance or stringent ideology.

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93 comments

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9:44AM PDT on Mar 19, 2014

thanks

10:12AM PST on Feb 26, 2014

You can sign up the entire country into Medicaid, but you can't force doctors to see Medicaid patients, and doctors that will accept it now are hard to come by. They pay less than the services cost in many cases. And the paperwork and shenanigans Medicaid pulls makes it not worth fooling with. Would you do a colonoscopy for $114.00? That's what Medicaid used to pay the doctors I worked for. It pay my hairdresser more to get a haircut and highlights. Seriously people, putting everybody into Medicaid is not a good thing on any level, and Obama did not mention that his plan was to move a huge number of people into Medicaid when he was selling the plan. Nobody read the bill because he didn't give anybody time to. How convenient.

9:57PM PST on Feb 25, 2014

The Republicans blatantly show how little they care about the best interests of the American People. How little they care to help others is SHAMEFUL.

8:12AM PST on Feb 25, 2014

I know Michael - I guess hope springs eternal. I have on occasion seen some humour from David so perhaps he'll have an epiphany...perhaps?

8:23PM PST on Feb 24, 2014

Linda.

While I think it is a positive attempt on your part to engage in a discussion with him.

But he doesn't want to really discuss anything, he is what has been defined as a sadistic internet troll. It's the same with Benghazi Bill. All they really want to do is come to sites and dump their toxic waste, hoping to tick people off.

3:30PM PST on Feb 24, 2014

cont. - same for everyone else.

3:29PM PST on Feb 24, 2014

DAVID - My dad was vacationing in CUBA when he got ill there (Of course Americans still aren't supposed to go there over something that happened 50 years ago, like Cuba is some big threat, yet the US sucks up to China & other tyrannical nations that are). He was well taken care of at no charge & he didn't have any extra insurance. He thought Castrocare was pretty good.
I got sick in India & a doctor came to my hotel at no charge. I just had to buy the necessary antibiotics. Boy, health care really sucks even I so called 3rd world countries. Currently many Americans take health vacations to places like India where they have surgery by excellently trained physicians (the ones that haven't already emigrated to the US, UK or Canada) & get a vacation at the same time. They go because, even with air fare & hotels, it costs less than in the US & insurance companies won't cover their surgery based on one excuse or another. God bless insurance conglomerates.
I'm having a total shoulder replacement in 3 weeks. I have no concerns about any bills. I've had a thorough preop assessment, consultation with the surgeon & anaesthetist & my post op home care (since I live alone) re physiotherapy & any other necessities (like transportation to follow up appointments since I won't be able to drive) are already arranged. I won't even see a bill since my tax dollars have already paid for it incrementally over the years. Now when I need it, it's there. Same fo

3:16PM PST on Feb 24, 2014

Busy, busy handing out green stars...

11:04AM PST on Feb 24, 2014

Something about your comment Robert brings to mind the phrase

hitting the nail on the head.

10:50AM PST on Feb 24, 2014

Actually Michael he simply wants to spew his propagnda unmolested thats all he cares about. Just having the chance to pollute critical thinking is what makes shim get up in the morning. He isnt VERY conservative. He isnt a conservative at all. He is a McCarthyist. A Bomb thrower

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Colleen H. Colleen H. is an Online Campaigner with Care2 and a recent transplant to San Francisco from the East... more
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