Texas SHOULD approve Medicaid Expansion

Medicaid expansion has been a hot topic since Texas said “NO” to Medicaid expansion. Medicaid expansion is nation’s health insurance program for law-income individuals and families under the Affordable Care Act which is set to begin in 2014. Under the original law, all U.S. citizens under 65 with family income up to 133 percent of the federal poverty level ($30,675 for a family of four in 2012) will qualify for Medicaid under the expansion. The Medicaid expansion is a joint state-federal government health insurance program in which federal government would pay 90 percent and a state would be required to pay 10 percent. But the Supreme Court upheld the Afforable Care Act’s Medicaid expansion in June 2012. Later the Supreme Court ruled that the Afforable Care Act allowed states to opt out of the Medicaid expansion part of the law, leaving each state’s the choice to participate or not to participate. Fourteen states including Texas announced their rejection to the Medicaid expansion. In Texas the opponents of the Medicaid expansion say that Texas can’t afford Medicaid expansion. They also point out that without the expansion, Medicaid is growing rapidly in Texas and the cost of Medicaid is already out of control.

In my opinion, Medicaid expansion is a good deal for two reasons:

1.      It will bolster economy in Texas

2.      It will reduce uninsured rate in Texas

Since the federal government will pay 90 percent of the cost, states would pay only 10 percent which is not a big expense for a state. Spending money through Medicaid expansion is kind of an economic stimulus in which government money will flow directly to local economy, supporting wages, employment, and consumer spending. Besides, having health insurance coverage enables people to lead healthier lives which in turn makes them more capable of paying their taxes, mortgages, student loans and other living expenses and hence will be good for economy. In addition, Medicaid expansion will add lots of jobs and reduce the cost of insurance premiums. For example, a study by university of Florida commissioned by the hospital association found that expanding Medicaid or finding alternatives that still bring in those federal dollars would create 49,949 jobs in the health-care industry alone in Florida.  Most importantly, expanding Medicaid will provide financial relief to the hospitals that care for uninsured people. Without the Medicaid expansion, hospitals will continue to have high uncompensated care costs, and they will not receive the federal dollars that could have offset these costs.

            In Texas, more than 6 million people including 1.2 million children are uninsured.  25 percent of Texas residents lack health insurance, compared with a national average of 17 percent. The main factors that contribute the Texas’ high number of uninsured are many Texas jobs without any health benefit and the presence of large immigrant population. May be, you and I are fortunate enough to have health insurance, but think about those 6 million Texan who can’t afford any health insurance and how uncertain their lives are. Medicaid expansion is a moral and fiscal imperative.

 Furthermore, opting out of the Medicaid expansion does not save the Texas tax payers’ money. Why is Texas rejecting the Medicaid expansion when Texans are paying for it anyway?

 Medicaid expansion will not only help Texas economy but also reduce number of uninsured Texans. Thus, it is the right thing to do.