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This question is in regard to the Medicaid expansion, and the Affordable care act. Ultimately, states will be responsibl...

This question is in regard to the Medicaid expansion, and the Affordable care act.

Ultimately, states will be responsible for 10 percent of the cost of expansion in their states. How will the states handle this cost?

(I'm thinking it could have something to do with eligibility, reimbursements, tax cuts and or blocking grants? HELP.)

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Answer #1

States will handle this cost i.e. the cost of 10% of expansion by realizing savings due to the expansion. It should be noted that states will realize savings by moving adults who are in existing state funded health programs into expansion coverage. As such expansion will allow states to reduce their spending on uncompensated care and this happens as uninsured people gain coverage.

Net costs of the expansion are only a miniscule portion of states’ overall budgets and many states are using taxes on products like cigarettes and alcohol to pay for the balance.

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