When States Reject Medicaid Expansion, Providers, Businesses Will Pay
According to the analysis from Jackson Hewitt Tax Service Inc., the associated costs to employers could total anywhere from $876 million to $1.3 billion in the 22 states that are either opting out of the expansion, or are leaning that way. In Texas, for example, federal tax penalties on the state's employers would increase from $299 million to $448 million each year.
"Any projections of the 'net' costs of Medicaid expansions should reflect the very real costs of the shared responsibility penalties to employers in any particular state," the analysis said.
Brian Haile, senior vice president for Health Policy Jackson Hewitt, and the author of the study, says states and businesses must make sure they understand the consequences of forgoing Medicaid expansion funding.
"The tax code is incredibly complex but in light of the Supreme Court's decision making Medicaid expansion optional you have some unanticipated results," Haile told HealthLeaders Media. "Folks who are very concerned about taxes might in some senses favor expanding Medicaid. You usually can't say that in the same sentence but you can in some instances say that here."
John Commins is a senior editor with HealthLeaders Media.
- Top Reason for Nurse Turnover: Managers
- CEO Exchange: Pressure is On to Partner, Drive Quality
- Interventional Radiology No Longer a Sub-Specialty
- Behind the CVS Health Rebranding Strategy
- CMS Pitches Medicare Appeals Deal to Hospitals
- Mobile Health Screenings Come Under Scrutiny
- How MA plans to re-enroll 450,000 residents in health insurance
- House OKs Cassidy's 'keep your plan' bill
- Medicare is pricier in unhealthy states, study says
- Washington, Wall Street Gauge HIX Performance as Open Enrollment Nears