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It's better for everyone when this is paid for.

The Center on Budget and Policy Priorities combines some studies, crunches some numbers, and concludes that Medicaid expansion is a good deal for states. The Congressional Budget Office has estimated that Medicaid expansion would increase state spending by just 2.8 percent over what they would have spent on Medicaid from 2014-2022 otherwise, with the federal government picking up nearly 93 percent of the costs. But that's not the whole picture.
This 2.8 percent figure significantly overstates the net impact on state budgets because it does not reflect the savings that state and local governments will realize in other health care spending for the uninsured.  The Urban Institute has estimated that overall state savings in these areas will total between $26 and $52 billion from 2014 through 2019.  The Lewin Group estimates state and local government savings of $101 billion in uncompensated care.

Other independent analyses show similar or even more favorable results for states.  An Urban Institute analysis finds that state Medicaid expenditures would likely increase by 1.4 percent over what states would otherwise spend on the program from 2014 through 2019, before taking offsetting savings in uncompensated care and other health services into account, while the Lewin Group estimates an increase in state Medicaid expenditures of 1.1 percent over that period.  These estimates reflect the increased state costs for Medicaid but not the offsetting savings states will also secure in uncompensated care and other health services. […]

In short, the Medicaid expansion will cover 17 million low-income people at a very modest cost to states — a cost that will be at least partly offset by savings in uncompensated care and other state-funded services for the uninsured.

That's just what states could save from not having to pay for caring for the uninsured. It's not even considering the economic benefits that states would enjoy from creating more health care jobs and having more people with money to spend on things other than trying to pay off huge medical bills.

The Republicans' excuse in the red states for not expanding Medicaid is usually that the additional costs would break them. That's demonstrably not true. The real reason they won't take the expansion, no matter how much it might help their budgets, is that they want to sabotage the law. It doesn't matter that they're leaving millions uninsured, as long as they're keeping their tea party base happy.

Originally posted to Joan McCarter on Thu Mar 27, 2014 at 01:19 PM PDT.

Also republished by Daily Kos.

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Comment Preferences

  •  Tip Jar (18+ / 0-)

    "The NSA’s capability at any time could be turned around on the American people, and no American would have any privacy left, such is the capability to monitor everything. [...] There would be no place to hide."--Frank Church

    by Joan McCarter on Thu Mar 27, 2014 at 01:19:10 PM PDT

  •  Washington State is ahead of the game (4+ / 0-)
    Recommended by:
    blueoregon, hbk, worldlotus, Calamity Jean

       The State has taken the Medicaid expansion challenge seriously and has enlisted high tech IT to help create a database, available on ER platforms across the region to track the Medicaid patient treatment.

    ER visits by Medicaid patients fell by 10 percent in the program’s first year, and the rate of ER visits that resulted in non-acute diagnosis decreased more than 14 percent. Overall, the state says its Medicaid ER costs fell $33.7 million in the 2013 fiscal year. Because other changes to ERs were made at the time, the state says it can’t definitively attribute all the savings to this effort.

    “If a patient was seen three days ago at Harbor View Medical Center and walked into Valley Medical Center 25 miles south, the treating physician might know they were seen there and might have some info about what went up,” says Lessler. “Up until that point, you never had that information.”

    First year in operation:  a 10% decrease in Medicaid ER spending.

       The very sad part is that because some in DC hated the plan from the get go and have spent 3+ years smearing the program, consider how much better healthcare would be for everyone, if all the states that are now looking to copy the WA plan had set their IT creative folks free to improve this process.

    Embedded in the article is the information about the IT designer, also a must read!    :-)

  •  Oregon's had a few glitches, (0+ / 0-)

    hopefully, I can sign up tomorrow or monday. (lost my navigator's number)

    They Killed Will? Those Bastards!

    by blueoregon on Thu Mar 27, 2014 at 03:56:17 PM PDT

  •  NYS reimburses uncompensated care through a (3+ / 0-)
    Recommended by:
    worldlotus, Calamity Jean, ferg

    vehicle known as the bad debt and charity care pool. The hospital where I worked (I retired 10 yrs ago) received $40 million annually through this pool. To the extent that more people in the hospital's catchment area are Medicaid eligible due to Medicaid expansion then the hospital won't need to draw down from the charity care pool. Result: less reliance on NYS charity care pool.

  •  Really feeling for all the hard working adults in (0+ / 0-)

    Alaska and other red states hearing the ads and being encouraged to sign up by March 31, only to be told, "You don't make enough to qualify for subsidies, so you're sorry out of luck for health insurance coverage."

  •  Well there's your problem right there. (0+ / 0-)
    The Center on Budget and Policy Priorities combines some studies, crunches some numbers, and concludes that Medicaid expansion is a good deal for states.
    Numbers have a well-known liberal bias, and don't even get me started on so-called "studies!"

    Early to rise and early to bed Makes a man healthy, wealthy, and dead. --Not Benjamin Franklin

    by Boundegar on Fri Mar 28, 2014 at 07:00:51 PM PDT

  •  You could have Einstein himself (0+ / 0-)

    going over the savings now and the projected savings in the future as these programs take effect and the GOP still would not believe a word he uttered.

    As with some posters,  I, too, am also  a retired health care professional working in hospitals for 23 years.  I am well aware of the methods hospitals use to offset the unpaid bills left behind by the uninsured and low income patient.

    By now, we know, those with insurance are charged more, in turn, your insurance carrier raises your premiums; it is a vicious circle of trying to recoup.  Hospitals try by every means at their disposal to overcharge because they used to be able to get away with it.  

    The ACA does address fraud, waste, and if given time to fully function, there will be improvements on many fronts.  

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