State health care admin: Obamacare would cost state $1.6 billion in Medicaid

Aug 14, 2009

by Josh Hafenbrack

Florida officials have calculated that the health care proposals being debated in Congress could extend Medicaid coverage to 1.4 million uninsured residents—and cost state taxpayers $1.6 billion a year.

The analysis, done by the state Agency for Health Care Administration, found Florida’s already mushrooming Medicaid rolls would grow from 2.6 million people to around 4 million under federal plans to overhaul the health care system.

Legislation pushed by President Obama would help cover Florida’s 4 million uninsured by expanding Medicaid eligibility to include higher incomes and new categories of people, such as childless adults.

With the federal government picking up two-thirds of Medicaid costs, that would mean a $1.6 billion hit to the state budget, the study showed. That’s on top of the more than $5 billion a year the state said in February that Medicaid is costing, a figure that’s likely higher today.

“Our Medicaid program is bordering on unsustainable as it is,” said House Majority Leader Adam Hasner, R-Boca Raton. “If you add this component, you are going to break the back of Florida and every other state.”

Reprinted from the Sun Sentinel

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