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Monday
Jul092012

Healthcare Law Expands Medicaid Coverage in GA: Governor Deal Says "Lets Wait"

The Supreme Court ruled on June 28th that the "Affordable Care Act", the health care legislation sponsored by President Obama, is constitutional and will go into effect as planned, unless it is overturned by the legislature after the election this fall. Another ruling handed down in the decision that had less press but also has far reaching consequences is the ruling on the expansion of Medicaid in the 50 States. The law expands Medicaid coverage to more than 650,000 people in GA. Medicaid in GA covers about 1.7 million people today. The Federal government has promised to pay 100% of the cost of bringing the extra people onto Medicaid for the first 3 years of the program and then up to 90% thereafter. 

The Supreme Court ruling focused on the federal governments claim that it can force the states to expand their Medicaid programs and accept the new money, or else if the States do not expand their Medicaid programs, the federal government would take away Medicare money for State's current programs. The Court ruled that the federal government could not withhold Medicaid money from the States for not expanding their programs, deeming that coercion.

Governor Deal announced last week that GA would "wait and see" what the election in November brought. If congress or the white house switches parties in the election, it has been made known quite publicly that the Affordable Care Act would be overturned and a new healthcare program created. The Governor has said that he believes it is prudent to wait and see what happens, instead of spending tax payers dollars now to expand a program that may be thrown out at the beginning of the year.

Georgia health care providers are divided on whether or not the expansion of Medicaid would be a good thing for GA. Last year alone, GA hospitals lost 1.5 billion dollars treating people without insurance and who could not afford to pay their healthcare bills. On top of that, Medicare and Medicaid are implementing programs to cut costs and payments to doctors and hospitals by $155 billion over the next 10 years. Many rural hospitals worry that if payments are being cut without the expansion of more Medicaid (insurance) patients, it may be catastrophic for their business. Others point to rising suspicions, which have not been dispelled that the US government in time, will not be able to pay for all the services it currently provides. This means that hospitals and doctors will be required to take less money, see more people, and have a weaker and weaker guarantee that they will get paid at all.

Will expansion of Medicaid be good for GA or will it add more stress to an already beleaguered healthcare system that could ultimately break it? It seems like it will be more waiting for GA and the rest of the nation.

For more in-depth coverage of the situation, read Misty William's and Carrie Teegardin of the AJC article about Georgia Health Care in Limbo.

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