April 20, 2010

Federal Government Will Pick Up Nearly All Costs of Health Reform Medicaid Expansion

The Center on Budget and Policy Priorities (CBPP) reviewed the health reform legislation, estimates by the Congressional Budget Office, state analyses, and independent analyses published in peer-reviewed journals. They project that the federal government will cover 96% of the $454 billion cost of health reform- related Medicaid expansion from 2010 to 2020. Although several states have claimed that expanding Medicaid will substantially increase state costs; CBPP says over the first five years of the expansion, state Medicaid costs will increase by just 1.25% above what the states were already expected to spend on Medicaid without health reform.