Ten Myths of the Obamacare Medicaid Expansion

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Ten Myths of the Obamacare Medicaid Expansion As Obamacare’s Medicaid expansion is being debated in the states, many myths are being perpetuated by its advocates. Here, Heritage provides the research to debunk such myths: 1. Myth: Expanding Medicaid is “free money” for the states. Reality: The expansion adds an estimated $638 billion in new government spending from 2013–2023. New spending at the federal or state level is reckless in light of the country’s trillion dollar budget deficits and over $16 trillion in national debt. As Governor Rick Perry (R–TX) stated, “[T]here is no such thing as ‘free’ money. We know there’s only money that’s collected from taxpayers, and money borrowed from other countries like China against the good credit of our children and grandchildren.” 2. Myth: Expanding Medicaid will entail little to no costs to the states. Reality: Within three years, costs would exceed any projected savings. Heritage research shows 40 of 50 states would see increases in costs due the Medicaid expansion. If all states expand, state spending on Medicaid would increase by an estimated $41 billion by 2022. 3. Myth: Medicaid expansion can bring savings to the states. Reality: Analysis by Heritage shows that by 2022 any projected state savings are dwarfed by costs. Moreover, these projected savings assume states will further reduce payments to hospitals and clinics for uncompensated care. But, as Heritage’s Ed Haislmaier points out, it is more likely that hospitals will lobby state legislatures for more money rather than less. 4. Myth: States can opt out of the Medicaid expansion if they change their mind later. Reality: Some proponents of the expansion claim that states could drop out of the expansion if the federal government reneges on its commitments. But as legal experts Robert Alt and Dan Greenberg state, “[I]n fact, there is substantial reason to believe that when a state chooses Medicaid expansion, it is something like a decision to go down a one-way street” and that “legislators are mistaken to ignore the possibility that expansion cannot be abandoned as easily as it was entered.” Get the full list >> Obamacare and the Medicaid Expansion: How Does Your State Fare? Helping the Sick Means Getting the Policy Right Studies Show: Medicaid Patients Have Worse Access and Outcomes than the Privately Insured State Lawmaker’s Guide to Evaluating Medicaid Expansion Projections Democratic Senator: Obamacare a “Train Wreck Coming”   46 Percent OF AMERICANS WILL DEPEND ON THE GOVERNMENT FOR HEALTH CARE BY 2021 Adding to the Medicaid population will only exacerbate its underlying problems. Learn More >>     About The Heritage Foundation Founded in 1973, The Heritage Foundation is a research and educational institute — a think tank — whose mission is to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense. The Heritage Foundation | 214 Massachusetts Ave NE, Washington, DC 20002 | 202.546.4400 | heritage.org

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