The Refusal of Medicaid will Bring Huge Costs to the State

While many people don’t agree with the plans for Medicaid, according to the cost studies it will cost states billions of dollars not to implement the system and these costs will be passed on to the taxpayers. The main point of the system is to make it possible to have medical insurance even for those less fortunate.

In the News

According to some specialists, the people looking for medical coverage may be told that they are eligible for signing up for the Medicaid system. However, when they wish to enroll they receive the answer that they aren’t eligible simply because the Obama administration doesn’t have complete information about them.

The Option to Refuse

According to the law, the government cannot compel the states to accept the Medicaid system. This means that there might be some states in the future that won’t have a system of this kind. However, these states also have to take into consideration that, according to the studies, by refusing the system they will have costs of billions of dollars in the future that will need to be covered by the taxpayers. The expansion of the Medicaid system will be covered by the government for 3 entire years and after this period the government will have to pay for 90% of the costs.

“Private” Medicaid

Some officials are trying to persuade the government to let them use the money that the state would receive to cover the costs of the expansion of Medicaid to help working people with low incomes to buy cheap private insurance. They claim that such a solution might be more viable on the long run.

Expansion of the Deadline

Although at the beginning the government seemed to have no mercy when it came to the deadline of signing up, a little before the deadline it expanded the signup period with three more months. This means that the people who would like to have coverage but didn’t have the chance to enroll until now will have more than enough time to do so.


If we take a look at the financial aspects of the system, we can see that it’s not worth for the states not to implement the system. However, there are some social aspects as well. Medicaid is supposed to take care of the coverage problems of the people who cannot afford any other kind of coverage, but there may still be some people who will fall through the cracks.