Report Predicts States Will Save Up to $129B by 2019 Under Reform

The federal health reform law will help states save between $92 billion and $129 billion from 2014 to 2019, according to a new report by the Robert Wood Johnson Foundation and the Urban Institute, Fierce Health Finance reports (Shinkman, Fierce Health Finance, 7/12).

According to the report, state spending on new Medicaid beneficiaries will increase by $80 billion. However, that additional spending partially will be offset by an anticipated $66 billion in new federal spending on existing Medicaid enrollees, the report states.

States also will save $69 billion from the elimination of Medicaid eligibility for some U.S. residents with incomes above 138% of the federal poverty line (United Press International, 7/11).

In addition, the federal government might spend as much as an additional $743 billion on Medicaid, a portion of which would offset state expenditures (Fierce Health Finance, 7/12).

Additional savings will come from a 12.5% to 25% reduction on spending for uncompensated care, cutting federal spending by between $39 billion and $78 billion and state spending by between $26 billion and $52 billion.

Expanded mental health coverage also is expected to save states between $11 billion and $22 billion (United Press International, 7/11).

The report notes, "Each state's costs and savings will depend upon its Medicaid eligibility rules, characteristics of its uninsured population and other factors" (Fierce Health Finance, 7/12).

Ann Stewart
Countries with large populations do not use pure single-payer. France uses a combination of public funded single payer and private supplemental insurance (all covered, no rationing). Japan uses mandatory insurance. Germany uses mandatory non-profit insurance. (100%) coverage, no rationing. Universal coverage does not require single-payer. Speaking from personal experience the single payer "coverage" is sometimes more rhetoric than reality. support public-private coverage, affordable regulated insurance, two tier systems. Coverage and service are better.
Vashti Winterburg
Kind of piddly when you consider that studies of single payer health care have shown that it would save the U.S. $450 Billion a year, i.e. $4.5 Trillion over 10 years. Even in Kansas a study about 3 years ago showed the state would save $800 Million a year, AND COVER EVERYONE!
Robert Forster
The numbers are based on assumptions that have not been tested nor implemented. It is likely they are overly optimistic just given the history of our government in the last 40 years. Private insurance will necessarily sky rocket to accommodate 30 million subsidized new insureds. So both personal Federal taxes and cost of living will accelerate, but the states will have more revenue to grow the bureauocracy. It is OK if that is what we desire for America. Just know the trade offs and the old saying about how one can manipulate "facts."

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