Recently, the state of Mississippi decided that it would become the first state to reject participation in the Medicaid expansion as outlined under the patient protection and affordable care act. Other states are considering doing the same, but a recent report issued by a nonpartisan group of financial professionals shows that choosing not to expand Medicaid could have a detrimental effect on those with private healthcare plans.
In September, the American Academy of Actuaries published a report stating that states that do not expand Medicaid to include those making up 133% of the federal poverty guideline, as outlined in the federal healthcare law, may end up costing those with private healthcare plans because of an increase in premiums. The Academy’s report states that due to the different health statuses of new enrollees into Medicaid, those on private insurance may end up paying more for their own plans. Also, employers may also face an additional risk of penalties if they are located in the state that does not expand the joint federal and state health care program.
The American Academy of Actuaries is composed of about 17,000 members. The group reports on matters of public interest and provides information to policymakers and the public. It also acts as a standards setting body, determining what criteria should apply to professional actuaries in United States.