What Your State May Not Be Telling You

Healthcare Reform has become a large topic of debate making the decision hard for states, whether State’s should be for or against the changes.  States like Florida and Texas are opposed to the expansion even though they both have a large population of uninsured residents currently living in their states. States like California have jumped on board because they see it as a great opportunity for their citizens. The Medicaid expansion has a few gaps in the coverage to make either choice debatable.

States who decide to not to expand their Medicaid offerings are usually opposed to the high costs associated with the initial start. Medicaid has caused financial strain on many states in the past years, the idea of raising the poverty level to allow for more people to have Medicaid is an increase in cost for the state as well.  For states not interested in the expansion, residents will still be allowed the original requirements for Medicaid and insurance. The poverty level will be lower so less people will qualify for Medicaid, 100% vs. 138%, however those who aren’t eligible can still apply for the private health insurance. The benefit of not expanding is nothing will change; there will be no financial burdens for the state and the same care will be given.

Expanding states see the healthcare reform as an opportunity and investment. By expanding, the initial start-up actions will tack on a few extra costs but will slowly reduce those for Medicaid while decreasing budget deficits for individual States. The Medicaid expansion requirement raises the annual salary cost for those wanting to apply and increases the federal poverty level for individuals. Those who make more or are above the poverty line requirements are still able to apply for private health insurance. Expanding is beneficial for states in that it is an investment. Like all good investments, there will be initial fees but is said to reduce overall costs that the country has been facing with Medicaid.

The gap between the two options faces many adults in the country. People who live in States that are not expanding, where the poverty line is lower than  100% and are not eligible for Medicaid, but also who make too little in annual salary to be eligible for private insurance are concerned as to what their options are. The gap offers one solution, to apply for Medicaid regardless of your State’s expansion decision.

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