Medicaid Expansion under Obamacare Now Official

As promised under the Patient Protection and Affordable Care Act (ACA), the U.S. Department of Health and Human Services last week made official that the federal government will pay 100 percent of  cost for new beneficiaries under Medicaid expansion for three years beginning Jan. 1.

The announcement and subsequent publishing in the National Register was a fait accompli. Under the ACA, states can expand Medicaid to adult Americans with income of up to 133 percent of the federal poverty level. Contrary to the ACA, the U.S. Supreme Court ruled last year that this expansion would be at the option of the states rather than mandatory, and many states have opted not to accept it, most citing budget concerns when the federal reimbursement drops to 90 percent.

“Today’s final rule provides important information to states that expand Medicaid,” according to the HHS announcement.  ”It describes the simple and accurate method states will use to claim the matching rate that is available for Medicaid expenditures of individuals with incomes up to 133 percent of poverty and who are defined as “newly eligible” and are enrolled in the new eligibility group.  The system is set up to make eligibility determinations as simple and accurate as possible for state programs.”

The Medicaid expansion final rule can be downloaded here (PDF, registration required):  (You must be logged in to download this file. Don't have an account? Register for free and you'll be returned to this page.)