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Wednesday, Jul 22 2015

Full Issue

States Likely To Seek Funding Help From Hospitals For Medicaid Expansion

In 2017, states will be on the hook for a small percentage of the cost of covering people who came into the Medicaid system through the health law's expansion efforts. The enrollment numbers are larger than many states anticipated, so they could look to hospitals to help cover the costs.

Policymakers in Medicaid expansion states likely will try to wring some cash from hospitals starting in 2017 when the federal government no longer pays the full tab for the coverage expansion, experts say. Higher-than-expected enrollment means expansion states will be on the hook for hundreds of millions more than they anticipated when they took advantage of the Affordable Care Act's Medicaid expansion to adults earning up to 138% of the federal poverty level. For instance, in Oregon, 386,000 people enrolled Medicaid in 2014, up from a pre-expansion estimate of 222,700. (Dickson, 7/21)

Meanwhile, Alaska officials move forward on expansion plans there.

The state health department has hired a consultant to help recommend next steps as Gov. Bill Walker's administration plans to implement Medicaid expansion and looks to make further changes to the existing Medicaid program. The contract with Agnew::Beck Consulting LLC calls for a finalized report in January recommending alternative Medicaid expansion models and options to help contain costs within the Medicaid program. A report due in May would address a timeline and costs for carrying out the recommendations. (Bohrer, 7/21)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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