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Expansion of Medicaid Does Not Fit All States

For Immediate Release 
May 07, 2015

Media Contact:  Brian Faughnan, 703-678-4581 or Josh Rivera, 202-763-4428

Expansion of Medicaid Does Not Fit All States

Increasing costs while threatening care for the neediest


(Washington D.C.) – A new report from the Obama administration shows an increase of 11.7 million sign-ups to Medicaid – a surge largely due to the program’s expansion under the Affordable Care Act (ACA). After the Supreme Court declared the law’s Medicaid expansion provisions as optional for states, 29 have opted to expand while others have declined to do so, citing concerns over higher costs to taxpayers and poor health outcomes under the program. Despite the court’s ruling, the administration is still seeking to force states such as Florida and Texas to participate. State officials in both Texas and Florida have been told by the Obama administration that if they do not expand their state Medicaid programs they may lose millions in annual funding under the Low Income Poll fund which reimburses hospitals for care of indigent patients. A new study by the RAND Corp. found that while 22.8 million Americans gained coverage under the ACA, nearly 6 million people lost it — leaving a net increase in coverage of about 17 million. These figures illustrate a stunning growth in dependence on the taxpayer-funded Medicaid program, as more than 2/3 of the total enrollment gains under the law have been realized through the government-funded Medicaid program, rather than more highly-rated private insurance.

Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:

 “This administration needs to stop measuring success by growing the number of people dependent on government. Coercing states to expand Medicaid, aninefficient and unsustainable program with poor health outcomes, disregards state priorities and prevents them from exploring better and less costly ways to ensure quality healthcare for low-income families. Pushing more Americans into Medicaid puts taxpayers on the hook and appears to be causing a surge in costly emergency room visits nationwide, which ultimately threatens care for the neediest among us.  

Expanding Medicaid could ultimatelyreduce the quality of healthcare for people in need in states like Florida, where a large portion of the population is Hispanic. It’s time for the administration to reassess its approach to ensure that the well-being and prosperity of every American is the top goal.”

For interviews with a LIBRE representative, please contact: Brian Faughnan,703-678-4581 or Josh Rivera, 202-763-4428.