Medicaid Expansion is a Bargain

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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)

This entry was posted in Economy, Health.

One Response to Medicaid Expansion is a Bargain

  1. Julieann Wozniak says:

    It’s only a bargain if you believe that the GOP honestly cares about deficits. In the case of health care, it’s all about the optics. In order to fend off attacks from the even farther right, GOP pollies must oppose any program that carries the barest whiff of “Obamacare.” Doesn’t matter to them if actual constituents might be helped by said program, although it is an additional bonus for them if they are viewed by the base as being super vicious towards lower income people,