The trouble with Obamacare’s Medicaid Expansion is everything, and Ryan's AHCA must solve it. Charles Blahous @HooverInst

Mar 15, 2017, 04:18 AM

03-14-2017 (Photo: Nelson Rockefeller, Under Secretary of Health, Education and Welfare, makes a presentation on a proposed public/private health reinsurance program, 1954.) http://JohnBatchelorShow.com/contact http://JohnBatchelorShow.com/schedules http://johnbatchelorshow.com/blog Twitter: @BatchelorShow

The trouble with Obamacare’s Medicaid Expansion is everything, and Ryan's AHCA must solve it. Charles Blahous @HooverInst

“…One of the issues in contention is what to do with the ACA’s Medicaid expansion. Medicaid provides health insurance for the poor and is jointly funded by the federal and state governments. The ACA departed from the historical distribution of government financing obligations, providing inflated federal matching payment rates specifically to cover those brought newly under Medicaid. The federal government covered 100% of these costs from 2014-16, scheduled to phase to 90% from 2020 onward. The House bill would leave the ACA’s match rates in place until 2020, thereafter reverting to Medicaid’s historical matching formula through which the federal government provided 57% of funding on average. The expansion population enrolled before 2020 would be grandfathered in; the federal government would permanently fund them at the ACA’s elevated (90%) matching rates. After 2020, federal payment growth per Medicaid enrollee would be limited to national health cost inflation. The issue of how rapidly to reform the ACA’s inflated Medicaid payment rates has divided Congressional Republicans. Fiscal conservatives are concerned the bill does not do enough to scale back the ACA’s expansion costs. Other Republicans, as well as governors in expansion states, resist even the gradual cost-containment provisions in the House bill. The following explanation is not intended to provide guidance as to what schedule will produce the critical mass of votes necessary to pass legislation. Rather, it is an attempt to explain the substantive problems created by the ACA’s inflated match rate. It’s important these problems be corrected. While the precise timetable must be determined by the vote-counting, the bill’s sponsors are right to be taking this on….”

https://economics21.org/html/why-obamacare’s-medicaid-expansion-needs-be-fixed-2243.html