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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsPresident’s Budget Affirms That Washington Will Pay Nearly All the Costs of Expanding Medicaid
Presidents Budget Affirms That Washington Will Pay Nearly All the Costs of Expanding Medicaid
Posted by: Edwin Park
As expected, President Obamas new budget does not include two Medicaid savings proposals that would shift costs to states and which the Administration has previously supported. This should put to rest health reform opponents claims that federal deficit reduction efforts will require states to pay a greater share of the expansion costs than health reform requires now and their conclusion that states must thus pass up the opportunity to expand the program to millions more uninsured and underinsured low-income individuals and families.
Last years Supreme Court decision upholding health reform (the Affordable Care Act, or ACA) gave states the choice of whether to implement the Medicaid expansion. The expansion is a very good financial deal for states. The federal government will pay nearly all of the expansion costs 93 percent over the first nine years (2014-2022), according to Congressional Budget Office estimates from last year. Thats because the federal government will pick up 100 percent of the cost of the expansion to newly eligible individuals for the first three years and no less than 90 percent of the cost on a permanent basis.
Some state policymakers who oppose their state taking the expansion contend that the federal government will renege on its financial commitment by shifting costs to states and effectively increase how much states will have to pay. As evidence, they cited two Administration deficit reduction proposals: to establish a blended rate for Medicaid and the Childrens Health Insurance Program, and another to restrict states use of provider taxes to finance their Medicaid programs both of which would raise state Medicaid costs.
The Administration, however, first proposed these measures in 2011, when the Medicaid expansion was required of all states and well before the Supreme Court decision made it an option. By dropping these proposals from this years budget, the Administration is appropriately taking into account how deficit-reduction proposals could deter states from adopting the Medicaid expansion and affirming the federal governments commitment to financing nearly all expansion costs under health reform. (The budget includes about $22 billion in Medicaid savings over the next 10 years in the areas of prescription drugs, durable medical equipment and fraud and abuse, but none of those savings result from cost shifts to states.)
- more -
http://www.offthechartsblog.org/presidents-budget-affirms-that-washington-will-pay-nearly-all-the-costs-of-expanding-medicaid/
Posted by: Edwin Park
As expected, President Obamas new budget does not include two Medicaid savings proposals that would shift costs to states and which the Administration has previously supported. This should put to rest health reform opponents claims that federal deficit reduction efforts will require states to pay a greater share of the expansion costs than health reform requires now and their conclusion that states must thus pass up the opportunity to expand the program to millions more uninsured and underinsured low-income individuals and families.
Last years Supreme Court decision upholding health reform (the Affordable Care Act, or ACA) gave states the choice of whether to implement the Medicaid expansion. The expansion is a very good financial deal for states. The federal government will pay nearly all of the expansion costs 93 percent over the first nine years (2014-2022), according to Congressional Budget Office estimates from last year. Thats because the federal government will pick up 100 percent of the cost of the expansion to newly eligible individuals for the first three years and no less than 90 percent of the cost on a permanent basis.
Some state policymakers who oppose their state taking the expansion contend that the federal government will renege on its financial commitment by shifting costs to states and effectively increase how much states will have to pay. As evidence, they cited two Administration deficit reduction proposals: to establish a blended rate for Medicaid and the Childrens Health Insurance Program, and another to restrict states use of provider taxes to finance their Medicaid programs both of which would raise state Medicaid costs.
The Administration, however, first proposed these measures in 2011, when the Medicaid expansion was required of all states and well before the Supreme Court decision made it an option. By dropping these proposals from this years budget, the Administration is appropriately taking into account how deficit-reduction proposals could deter states from adopting the Medicaid expansion and affirming the federal governments commitment to financing nearly all expansion costs under health reform. (The budget includes about $22 billion in Medicaid savings over the next 10 years in the areas of prescription drugs, durable medical equipment and fraud and abuse, but none of those savings result from cost shifts to states.)
- more -
http://www.offthechartsblog.org/presidents-budget-affirms-that-washington-will-pay-nearly-all-the-costs-of-expanding-medicaid/
HHS finalizes rule guaranteeing 100 percent funding for new Medicaid beneficiaries
http://www.democraticunderground.com/10022584523
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President’s Budget Affirms That Washington Will Pay Nearly All the Costs of Expanding Medicaid (Original Post)
ProSense
Apr 2013
OP
ProSense
(116,464 posts)1. Kick! n/t