Opinion | Texas was right to reject Medicaid expansion WashTimesOpEd
With the recent addition of North Carolina and South Dakota, 40 states have now opted to expand Medicaid coverage. Texas legislators ignored the lure of “easy money” from Washington and nixed the idea again. Who’s right?
Medicaid costs have also significantly exceeded forecasts. In 2012, the Department of Health and Human Services predicted annual costs would average $4,000 per person. By 2018, the actual costs were 50% higher: $6,100 per person. Expanding Medicaid to the relatively healthy might make sense if it improved general health. But there is little evidence it does. In Oregon, for example, a first-of-its-kind controlled trial tracked individuals who applied for Medicaid through a lottery.Health outcomes aside, the Texas medical establishment apparently was hoping the added $5.4 billion in Medicaid matching payments from Washington would improve the bottom line. That was wishful thinking.
A 2020 analysis of IRS filings for 2,253 nonprofit hospitals in expansion and nonexpansion states confirms this. The analysis showed that Medicaid expansion reduced reported uncompensated-care costs by an average of $1.11 million between 2012 and 2016.
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