States can start new Medicaid expansion Thursday
By Christopher Weaver, Kaiser Health News | Kaiser Health News
WASHINGTON — Starting Thursday, states can choose to take the first steps toward the massive expansion of insurance coverage that is the recent health overhaul legislation's chief goal. For some states, that move could have the benefit of reviving funding for state-run programs that insure low-income adults.
As of April 1, states can apply for federal funding to expand their Medicaid programs to cover low-income people earning up to 133 percent of the poverty level, or $14,404 for an individual and $29,326.50 for a family of four. If implemented nationwide, this vast increase would bring 15 million more people into the safety-net program, according to the Congressional Budget Office.Typically, Medicaid covers children from families that earn less than the poverty level, and in some cases, their parents. Adults without children usually aren't eligible, although some states include them.
States that choose to take the federal government up on this offer would still have to pay their share of the new Medicaid costs until increased federal support begins in 2014, when the expansion is required of all states. On average, states pay more than 40 percent of the Medicaid tab. For states such as Nevada and West Virginia, which are struggling to meet their existing obligations, that requirement would be tough.
For a few states, however, the early expansion could provide a needed windfall. Maine, Washington, Minnesota and a handful of others already offer coverage for low-income people who earn too much to receive federal help under traditional Medicaid rules — and the states pay for it out of their own coffers. For them, the provision could mean the federal government for the first time would pick up a portion of the tab for those enrollees.
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