Medicaid Expansion Will Become More Costly to States

The Administration is selling the Medicaid expansion as a great benefit to the states, since the federal government foots a majority of the bill in the first years of implementation. However, even under the Affordable Care Act, the expansion will begin putting pressure on state budgets as early as 2019. State legislators cannot afford to be myopic when assessing the costs and benefits of expanding Medicaid. Aside from problems already apparent in Medicaid, such as patient access, states must also face uncertainty in how much the expansion will actually cost. The Medicaid expansion represents a giant increase in federal spending of $642 billion, according to the Congressional Budget Office. Instead of adding millions to Medicaid, Washington should reform the program. The Heritage Foundation’s Saving the American Dream does just that.

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