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Refusal More Costly than Medicaid Expansion

Posted on December 2, 2012 by admin

The initial cost to accept Medicaid expansion when the Obama administration offered states the opportunity in 2013 was nothing. The immediate federal assistance was free of charge, with payment plans coming further down the road. American citizens have become much more interested in the other side of the equation. The questions that they have are:

  • How have the states that refused Medicaid expansion been affected?
  • How much must they pay?

Examining the 24 states that have remained adamant in their refusal to accept the expansion offering, a recent study by the Robert Wood Johnson Foundation reveals important insight into these matters. Of its numerous findings, the most glaring indicates that “these states are foregoing $423.6 billion in federal Medicaid funds from 2013 to 2022, which will lessen economic activity and job growth.”

The losses do not simply end with adverse effects on the economy. The Robert Wood Johnson Foundation also states, “In the 24 states that have not expanded Medicaid, 6.7 million residents are projected to remain uninsured in 2016 as a result.”

Not only are citizens of the United States missing out on crucial employment opportunities because of their state’s decision to refuse the Medicaid expansion, but they are also not protected from health concerns either. By and large, Americans in these states are vulnerable.

This is the point where officials in the states who refused the program would claim that their decision was based on the high costs of the expansion in the future. They would declare that the burden of extra cost on the state would not allow them to funnel funds into other important state programs.

The study disproves this stance, stating that “for every $1 a state invests in Medicaid expansion, $13.41 in federal funds will flow into the state.” The Foundation’s findings also indicate that expanding Medicaid “will likely also generate state savings and revenues that exceed expansion costs.”

Economic growth, job opportunities and state savings are all being enjoyed by the residents and officials of 26 different states. The report by the Robert Wood Johnson Foundation is just the latest to convey the need for a change-of-heart in the nation’s other half.