NEW: Group Calls on RI to Opt Out of Health Exchange and Medicaid Expansion
Tuesday, July 10, 2012
The Rhode Island Center for Freedom and Prosperity today issued a report recommending the Ocean State get rid of its benefits exchange opt out of accepting federal funds to expand its Medicaid program.
The report details that there will be an approximate $2 billion increase in Medicaid spending in RI from 2014 through 2019 and that the state's share would be about $60 million per year if it opts for Medicaid expansion.
"The expansion of health insurance is not free and our state simply cannot afford an expanded entitlement program. Rhode Island can save jobs as well as hundreds of millions of budget dollars by choosing not to implement some of its optional provisions," said Mike Stenhouse, CEO of the Center.
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The report suggests employers may have a disincentive to expand under the health law thanks to requirements and resitrcitions that come for businesses which have 50 or more employees.
Also included in the report are discussions about the different groups of people who would obtain insurance or premium subsidies through the Exchange or via Medicaid, along with details the state's portion of the expense.
"There is a major misconception that the costs of the newly insured will be covered 100% by federal funding,” Stenhouse said. “This is not true and our state's fragile economy cannot absorb any more expense. Nor can we afford to lose any more jobs; we should protect our businesses from the job-killing employer mandate. Haven't we learned yet that chasing federal dollars often ends up costing our state in the long run?”
