More Medicaid and the PPACA

The PPACA will extend Medicaid benefits to anyone earning 133% of the federal poverty level (FPL). The majority of this increase in coverage will be paid for by the Federal Government, with States contributing a smaller share.

Currently, for a family of one, 133% of the FPL is $14,856. For a family of two, three and four, it is $20,123, $25,390 and $30,657 respectively. These incomes would now be eligible for Medicaid in all states under the PPACA.

A study conducted by Kaiser used two scenarios to determine some of the possible outcomes of the new policy. In the first scenario, 50% of eligible people participate in the new insurance. In the second, 75% participate.

  • In a standard participation scenario (50% of eligible participate)
    • Medicaid enrollment is projected to increase by 15.9 million by 2019
    • Law is projected to reduce the pool of uninsured by 11.2 million people compared to baseline
    • Federal spending would increase by $443.5 billion between 2014 and 2019
    • State spending would increase by $21.1 billion
    • 4% increase in enrollment nationally compared to baseline
    • 2% increase in federal spending compared to baseline
    • In Georgia:
      • Total new enrollees: 646,557
      • Previously uninsured enrollees: 479,138
      • $714 million in additional State Spending
      • $14.551 billion in additional Federal Spending
    • In an enhanced outreach participation scenario (75% of eligible participate)
      • Medicaid enrollment could increase by 22.8 million by 2019
      • 5 million reduction in uninsured adults compared to baseline
      • Federal spending could increase by $532 billion
      • State spending could increase by $43 billion
      • 39% increase in Medicaid enrollment compared to baseline
      • 27% increase in federal spending compared to baseline
      • In Georgia:
        • Total new enrollees: 907,203
        • Previously uninsured enrollees: 721,558
        • $1.233 billion in additional State Spending
        • $17.916 billion in additional Federal Spending
      • States with low Medicaid eligibility for adults today (such as Alabama and Texas) will see the largest impact
        • Federal spending in Texas is expected to increase by 39% compared to baseline
      • Massachusetts and Vermont already cover childless adults with incomes above 133% of the FPL under Section 1115 waiver programs

Additional Resources

Kaiser PPACA Medicaid Expansion Analysis: http://www.kff.org/healthreform/upload/medicaid-coverage-and-spending-in-health-reform-national-and-state-by-state-results-for-adults-at-or-below-133-fpl.pdf

2012 Federal Poverty Level: http://coverageforall.org/pdf/FHCE_FedPovertyLevel.pdf

 

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