Expanding Medicaid to cover an additional 750,000 people is only going to cost PA an additional $333 million a year, or $2 billion over 6 years. To put that in context, the state spent $4.9 billion on Medicaid in 2011-2012. It’s just not a whole lot more money, and there are plenty of weaker claims in the budget that could be cut to pay for it.
Stan Saylor is clearly wrong about this:
“Expanding Medicaid is the wrong course of action and is a disaster in the making. Adding more people to Medicaid is not something we should aspire to nor celebrate,” said Saylor in a memo circulated to House legislators. “It is not the way to address the uninsured population.”
Adding more people to the Medicaid risk pool will strengthen Medicaid’s market power to bargain down prices with providers. The bigger the risk pool gets, the less feasible it is for doctors to refuse to see Medicaid patients.
(Thanks: Melissa Daniels)