Most states realized years ago that Medicaid expansion through the Affordable Care Act is a good deal, but as things stand, there are still 12 holdouts. As a result, there are more than 2 million low-income Americans who don’t have health coverage.
The Democrats’ American Relief Plan hopes to reduce that number — ideally to zero. The Washington Post reported yesterday:
Florida and the 11 other states, most of them across the South, are the intended audience for a few paragraphs deep in the 630-page American Relief Plan. The legislation offers a novel and generous financial incentive to states if they agree to open Medicaid to more poor people and some in the working class. The White House has embraced the incentive, designed in Congress. It will pose an early test of Biden’s powers of persuasion as he tries to make good on his pledge to close the nation’s considerable gaps in insurance and health care — gaps the pandemic has thrown into vivid light.
This may sound a little complicated, but the offer is straightforward: under the ACA, the federal government already covers 90% of the costs of expanding Medicaid. As Vox recently explained, the Democrats’ new COVID relief package ups the ante: “[N]ewly expanding states would also receive a 5 percent bump in the federal funding match for their traditional Medicaid programs for two years. Because the traditional Medicaid population is significantly larger than the expansion population, the funding bump is projected to cover a state’s 10 percent match for expansion enrollees and then some over those two years.”
It led Jon Chait to joke, “Now states taking the Medicaid expansion would have more than 100 percent of the cost covered by Washington. They would literally have to pay for the privilege of denying coverage to their poorest citizens.”
If any state should take advantage of such an opportunity, it’s Mississippi, not only because of its financial difficulties — the Magnolia State is the nation’s poorest — but also because of its high uninsured rate. Since Mississippi would be in a position to actually make money by embracing Medicaid expansion, this seems like an obvious call.








