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Thursday, Oct 6 2016

Full Issue

States Worry About Rising Costs Of Medicaid Expansion

These budget concerns may hamper efforts to get the remaining 19 states to accept the health law's Medicaid expansion. Also, Georgia lawmakers weigh models that would allow expansion of coverage for low-income residents but at a lower cost.

The cost of expanding Medicaid under President Barack Obama's health care overhaul is rising faster than expected in many states, causing budget anxieties and political misgivings. Far more people than projected are signing up under the new, more relaxed eligibility requirements, and their health care costs are running higher than anticipated, in part because the new enrollees are apparently sicker than expected. Rising drug prices may also be a factor. (Cassidy, 10/5)

A legislative panel heard testimony Wednesday on ideas for reducing the high number of uninsured people in Georgia through alternatives to a standard Medicaid expansion. The Senate study committee focused on a variation of expansion that Arkansas and other states have launched. Under this “premium assistance,’’ a state would use Medicaid funds to purchase coverage in the health insurance exchange for newly eligible adults. (Miller, 10/5)

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