Noteworthy News

Mandate Delay May Drive Up Medicaid Enrollment

The Obama administration’s decision to delay requiring businesses with 50 or more workers to provide health insurance to their employees or risk penalties may result in an increase in Medicaid enrollment, especially in states that are expanding Medicaid eligibility.

Many of the businesses just given a temporary reprieve from the insurance mandate are in the retail and food service industries and many of their lower-paid workers may qualify for Medicaid in expansion states, observers believe.

For the nation’s urban safety-net hospitals, this may mean more patients for which they are underpaid by chronically underfunded state Medicaid programs and larger Medicaid shortfalls instead of new patients with better-paying private health insurance.

Read more about this possible by-product of the Obama administration’s latest decision on Affordable Care Act implementation in this Pittsburgh Business Times articleHealth Care Reform/Flag.

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