No Flexibility in Obamacare's Medicaid Expansion

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No Flexibility in Obamacare's Medicaid Expansion Last Friday afternoon, the Centers for Medicare and Medicaid Services (CMS) issued a short frequently asked questions (FAQ) document that should remove any remaining belief that the federal government will give state lawmakers flexibility on the Obamacare Medicaid expansion. The message is clear: The only thing a state that agrees to the Medicaid expansion will get is a bigger Medicaid program. The CMS reiterated the position it took in an earlier FAQ that the Obama Administration considers the expansion to be an “all or nothing” proposition for states. The issue arose out of last summer’s Supreme Court ruling on Obamacare. The Court held that the federal government could not coerce states into expanding Medicaid by conditioning continued federal funding for their existing Medicaid programs on states implementing the expansion. While the effect was to make the expansion optional for states, the Court did not address the practical consequences of its ruling. In the wake of the Court’s ruling, a number of state officials suggested that, since the new federally subsidized exchange coverage will be available to those with incomes above the federal poverty level (FPL), they might be willing to expand Medicaid that far up the income scale. States would then give those with incomes between 100 and 138 percent of the FPL—who would otherwise be part of the Medicaid expansion—federally subsidized exchange coverage instead. However, the Administration has once more made it clear that it will not agree to such an arrangement. It should now be apparent to all that that any state that agrees to the Medicaid expansion will get exactly what the term expansion implies: simply a bigger version of the same expensive and dysfunctional program. Read the Rest on The Foundry >> Pressing States to Participate in Medicaid Expansion Is a Bad Idea Medicare Advantage Survives—for Now Obamacare Causes Doctor to Retire CHART: Heritage Plan Would Rein in Excessive Medicare Spending Medicare’s Rising Costs — and the Urgent Need for Reform   6 Million AMERICANS WILL PAY THE INDIVIDUAL MANDATE TAX BY 2016 Americans are paying the price for the President's bad health care law.  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