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Medicaid Expansion

Budget Effects Under The Affordable Care Act 

General Medicaid Information 

Medicaid is the national health insurance program for low-income Americans and families.  Starting in 2014 the Affordable Care Act would require states to expand Medicaid to people under the age of 65 with incomes of up to 138 percent of the poverty line, or $15,414 annually for an individual.  The Medicaid expansion would mostly benefit Americans without dependent children that make too much money to be on current Medicaid, but not enough to purchase their health care individually.   While the Supreme Court of the United States upheld most of the Affordable Care Act, it ruled against the requirement that states expand Medicaid.  The Supreme Court found it unconstitutional to require states to expand Medicaid to include more people.  Missouri can choose to expand or not expand Medicaid in 2014 and the decision is a hot topic in the Missouri Legislature as Governor Nixon and legislators debate the expansion.
Want to learn more about the Affordable Care Act and Supreme Court ruling?

Medicaid Expansion in Missouri

From 2014 to 2020 the federal government will contribute 96.1 percent of the expansion costs to the state and the Missouri government will contribute 3.9 percent.
The federal government will pay for 100 percent of the Medicaid expansion for the first 3 years and will then decrease the federal contribution to 90 percent by 2020.
Medicaid would be expanded to more than 220,000 Missourians by 2020.
A projected 24, 008 jobs would be created in Missouri with 22,175 of them being sustained through 2020.
The Missouri government will pay approximately $333 million for Medicaid expansion combined with the federal government’s share of about $8.2 billion dollars resulting in approximately $8.6 billion.   This will add approximately $9.6 billion to the gross state product.
For more information about the effects of the Medicaid expansion in Missouri click here.

Missouri Legislators on Medicaid Expansion

Legislation to expand Medicaid under the Affordable Care Act supported by Governor Nixon and Missouri Democrats has been defeated many times in the Republican-led legislature.  Republicans have responded with arguments for a more cost-effective Medicaid plan that would be market-based and reduce dependency.  A market-based Medicaid plan sponsored by Representative Jay Barnes (R-Jefferson City) would add some adults up to 100 percent of the poverty level to Medicaid but remove some children and pregnant women that currently qualify.  (HB 700). Many opponents of Medicaid expansion argue it is too costly for Missouri to take on such an expense and this expense would cause the state to pull funding from other parts of the budget that could include higher education. Supporters of the expansion explain the importance of extending affordable health care to Missourians that cannot afford it and the need to bring tax dollars paid to Washington back to Missouri.

The University of Missouri Health System Supports Medicaid Expansion

The University of Missouri Healthy System reports it could lose up to $6 million a year from the federal government if the legislature does not accept Medicaid expansion. The Affordable Care Act reduces reimbursements to hospitals originally set out to pay for the uninsured. Read more here.

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