Cato scholar Jagadeesh Gokhale has a new study on the effect the Affordable Care Act will have on the Medicaid budgets in populous states. He explains:
Unless it is repealed, the Patient Protection and Affordable Care Act of 2010 (PPACA) promises to increase state government obligations for Medicaid by expanding Medicaid eligibility and introducing an individual health insurance mandate for all U.S. citizens and legal permanent residents.
Cato scholar Jagadeesh Gokhale has a new study on the effect the Affordable Care Act will have on the Medicaid budgets in populous states. He explains:
Unless it is repealed, the Patient Protection and Affordable Care Act of 2010 (PPACA) promises to increase state government obligations for Medicaid by expanding Medicaid eligibility and introducing an individual health insurance mandate for all U.S. citizens and legal permanent residents.
But PPACA provides states with no additional federal financial support for new enrollees among those eligible for Medicaid under the old laws. That makes increased state Medicaid spending from higher enrollments by “old-eligibles” virtually certain as they enroll in Medicaid in response to the individual mandate to purchase health insurance.
Specifically,
- California and Florida’s Medicaid expenditures funded by general revenue will nearly double by 2020 (from $19.4 billion in 2008 to $35.2 billion in California; and from $6.3 billion in 2008 to $12.6 billion in Florida).
- Medicaid expenditures in New York State are projected to grow from $23.8 billion to $32.9 billion during the same period.
- In Texas, Medicaid costs paid by general revenues will rise even faster – from $8.5 billion to $18 billion by 2020.
