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Study: States will bear little cost of Medicaid expansion under healthcare law

Washington Post, May 27, 2010

The federal government will bear virtually the entire cost of expanding Medicaid under the new healthcare law, according to a new study by the Kaiser Family Foundation that rebuts governors' protests about the impact on strapped states, the Washington Post reports. Roughly half of the increase in health insurance coverage under the new law is expected to come from expanding Medicaid in 2014 with a new nationwide eligibility threshold of 133% of the poverty level. A disproportionate share of the 16 million people expected to enroll in the expanded Medicaid live in states that have stringent eligibility rules for low-income adults. Governors of many of those states predict fiscal calamity, and some have cited the Medicaid expansion in the lawsuits they have filed against the new law, the Post reports.