Medicaid Expansion Trigger Laws

From Covering Kids & Families of Indiana

The Affordable Care Act (2010) encouraged states to expand Medicaid to low-income adults without children who did not get health coverage through their employers. To incentivize this, the federal government reimburses 90% of the cost to cover the expanded population.

Nine states, including Indiana, enacted Medicaid expansion over the years, but included a trigger mechanism that would eliminate the program or require an examination if the federal payment, also known as FMAP (Federal Medical Assistance Percentage), fell below the original 90%. These triggers may come into play as a new administration takes office and states like Indiana are faced with ballooning Medicaid costs.  Read more here

Additionally, Medicaid expansion helps children.  Studies have documented the positive effects on children of expanding Medicaid coverage for adults. These include lower uninsured rates, lower infant mortality rates and higher birthrates as well as improved school and health outcomes. Adult coverage also improves a family’s financial security. When parents get enrolled in health coverage, they are more likely to enroll their children. Learn more here

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