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Analysis Shows Impact of Opting Out of Medicaid Expansion

An analysis from the Kaiser Family Foundation Commission on Medicaid and the Uninsured (KCUM) found that 6.4 million people will miss out on insurance coverage if the 21 states not intending to expand their Medicaid program and the six undecided states do not implement the Medicaid expansion. These 6.4 million people account for almost two-thirds of the potential reduction in the number of uninsured originally tied to the expansion. A related KCUM brief discusses the implications of state expansion decisions on racial and ethnic minorities. Nearly half of all racial and ethnic minorities who would be eligible for Medicaid coverage under the expansion live in states that do not intend to expand their Medicaid program.

The analysis also estimated that hospitals in states not intending to expand their Medicaid program will receive $145 billion less than they would have otherwise received in Medicaid payments tied to the expansion. At the same time, hospitals are still facing cuts in Medicare and Medicaid disproportionate share hospital (DSH) payments. America’s Essential Hospitals has been vocal in opposing the cuts, as noted in last week’s Newsline article on the Medicaid DSH proposed rule.

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