Noteworthy News

Medicaid Expansion Money to Purchase Private Insurance? Not So Fast

Health Care Reform/FlagThe proposal by the state of Arkansas to use new Medicaid resources made available through the Affordable Care Act to purchase private health insurance for new Medicaid recipients may not be as simple as originally thought.

The approach, thought to be a major inducement for Republican governors reluctant to expand Medicaid eligibility in their states, ran into a number of snags when the state of Tennessee proposed a similar approach, leading that state’s governor to reject Medicaid expansion entirely.

Complications arose over matters like the cost of the private insurance plans, the adequacy of the coverage they offer, and possible cost-sharing by new Medicaid recipients.

The National Association of Urban Hospitals (NAUH) supports Medicaid expansion.

Read more about the bump in the road encountered by the private insurance-instead-of-Medicaid movement in this Washington PostWonkblog” feature.

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