The Federal government recently sent a letter to states informing them that if they delay in adopting the Medicaid expansion provisions as outlined in the Patient Protection and Affordable Care Act they might lose out on federal funding dollars.
Following the June decision issued by the Supreme Court, states are no longer obligated to expand their Medicaid enrollment lists to include anyone making up to 133% of the federal poverty guideline by 2014. Instead, the Supreme Court decision left it open for each state to determine if it would like to expand Medicaid. Since the Supreme Court issued its decision, some state governors, such as Florida’s Rick Scott, have stated they will not expand Medicaid. Other states have either already begun expanding or plan to expand by the 2014 deadline.
Under the health care expansion law, the Federal government would pay for 100% of the Medicaid costs associated with the expansion in the first year. After the first year, the Federal government would pay a decreasing amount, up to paying for 90% of the cost of the expansion by 2020.
In the letter, Federal officials explain that while states can choose to expand coverage or not, they can also choose if they want to adopt a later expansion, as well as choose to later stop covering those in the expanded group.