Wisconsin Medicaid Expansion — Is the Risk Worth the Reward?

Marc JoffeIn his new budget, Governor Evers is once again proposing that Wisconsin expand its Medicaid program to take advantage of additional subsidies available under the 2010 Affordable Care Act. Senators and Assembly Members should carefully consider the long ‐​term risks of expansion before accepting this proposal.From a short ‐​term budgetary perspective, Medicaid expansion seems like a great deal for Wisconsin. The federal government covers 90% of the costs for providing medical care for individuals in the expansion population compared to60.66% (in 2024) for those currently eligible for Medicaid and 0% for BadgerCare Plus members who are ineligible for Medicaid.Further, the American Rescue Plan Act of 2021 gave states an additional incentive to expand their Medicaid programs. If Wisconsin accepts the expansion, the Federal Medical Assistance Percentage (FMAP) on its existing beneficiaries would rise by 5% (from 60.66% to 65.66%) for two years. This extra funding would likely offset Wisconsin ’s state budgetary cost of the program while it is available.But what about the longer term? Wisconsin Manufacturers& Commerce (WMC)opposes Medicaid expansion because “federal Medicaid dollars will decline over time, leaving state taxpayers responsible to pay for a large unfunded entitlement. ”That is a reasonable worry. While it is true that under current federal law, the enhanced FMAP of 90% for the expansion population is permanent, it ...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs