Politics

Medicaid Expansion Costs Start at $79 Million and Climb

By: Jim Saunders News Service of Florida | Posted: August 27, 2012 3:55 AM
Barack Obama and Rick Scott

President Barack Obama and Gov. Rick Scott

Looking for the price-tag of the federal Affordable Care Act, analysts have released a report estimating that an expansion of the Medicaid program would cost the state $79.2 million during the 2016-17 fiscal year and that the costs would grow to $337.6 million by 2022-23.

The report, however, is loaded with assumptions about issues such as how many people would sign up for Medicaid if eligibility expanded -- and when they would sign up. The federal health law calls for broadening Medicaid eligibility, but the issue has become controversial in Florida because Gov. Rick Scott says the state will not go along with such an expansion.

Analysts, who released the report Thursday, also said they could not determine the Affordable Care Act's spin-off costs for another large group of people: those who already meet eligibility requirements but have not enrolled in Medicaid.

It has been expected that already-eligible people would start signing up, at least in part, because the federal law requires most Americans to have insurance coverage in 2014 or pay financial penalties. But low-income people are exempted from the penalties, making it difficult for analysts to pinpoint how many would enroll.

"The likelihood and pace of the population's presentation for services cannot be reasonably forecast at this time,'' the report says.

The analysts, representing the House, Senate, governor's office and the Office of Economic and Demographic Research, met Aug. 14 to discuss the projections and then compiled the report. The Affordable Care Act, which Congress and President Obama approved in 2010, has been a lightning-rod political issue in Florida, with Republican vehemently opposing it.

In June, the U.S. Supreme Court upheld the constitutionality of most of the law. But the court said states can choose whether to comply with a provision that would expand Medicaid coverage by increasing a key income threshold used in determining eligibility.

Scott immediately said Florida would not go along with the expansion, with a large part of his argument based on the potential costs.

Under the law, the federal government would pay all of the costs of expanded eligibility during the first few years and eventually would pay 90 percent of the costs. If Florida rejects the expansion, it would forgo as much as $3 billion a year in federal funding, according to estimates.

The report shows that Florida would have to start picking up part of the Medicaid expansion tab in 2016-17, paying about $79.2 million out of an overall cost of nearly $3.2 billion. State costs would gradually increase during the next several years and are estimated at $337.6 million in 2022-23 out of a total cost of almost $3.4 billion.

The analysts, however, made important assumptions in coming up with those numbers. As an example, they assumed that 79.7 percent of the newly eligible people would enroll in Medicaid -- a number based largely off current enrollment patterns -- and also that those people would enter the program gradually, not all at once.


Comments (4)

Teresa
3:42PM AUG 27TH 2012
Unbelievable. Since Gov. Scott, his family, and most Republicans already have insurance, they have no idea how costly it can be to just be seen by a doctor, nevertheless the astronomical costs of labs and tests I cannot afford to pay. They are not concerned about Florida citizens.
I am a contributing member of our society, a taxpayer, and yet, I make too much money to qualify for Medicaid but not enough to pay a monthly premium of $300-$500. Yes, there are plans that cost less, with very high deductibles of $1000-$3000 annually. I couldn't afford to reach the deductible!
What about those of us who are self-employed, or who became unemployed and couldn't afford insurance, or who work everyday, pay taxes, help their community, but have to pay for a policy with a deductible of over $1,000 a year?
I'm not even going to comment on all the federal funding available from the government to implement and support these health exchange initiatives. Our State just keeps passing funding opportunities by... while politics keeps us from being able to obtain affordable health insurance in the great US. That is pathetic...
Frank
10:12AM AUG 27TH 2012
So, a net medical assistance into the state of $3.12 BILLION the first year, and we're fighting this, why?

Pure politics, not the well-being considerations of Florida's citizens. Just think how many jobs would be guaranteed to be supported by that $3.12 BILLION.

Now tell me again how much taxpayer money Gov. Scott is putting into trying to get businesses to temporarily relocate to Florida and be exempt from our taxes until they decide to leave again for a better subsidy?

Pathetic . . . . just more job losses from Scott, justified by the Emperor's new clothes Truthiness.
blouton
12:59PM AUG 27TH 2012
we are'nt buying rick scott. what is the real reason you're against it.
blouton
12:59PM AUG 27TH 2012
we are'nt buying rick scott. what is the real reason you're against it.

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