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Corbett: State Can't Absorb Medicaid Expansion Costs

Gov. Tom Corbett says that expanding Medicaid in accordance with the Patient Protection and Affordable Care Act would cost the state millions of dollars that it doesn’t have.

By Melissa Daniels | PA Independent

HARRISBURG — Gov. Tom Corbett said that expanding Medicaid in accordance with the Patient Protection and Affordable Care Act would cost the state millions of dollars that it doesn’t have.

“I don’t think there’s any way we can absorb this,” Corbett said of the expansion costs, while speaking to the Pennsylvania Press Club recently.

As multiple states make their announcements on whether or not to expand Medicaid to more residents, Pennsylvania has yet to come out one way or the other. But Corbett was specific in citing associated costs, adding that Pennsylvania may not have room in the budget to cover them.

Kevin Harley, Corbett’s press secretary, said later that the state is still waiting to hear back from the federal government on certain questions before making a decision.

But there’s little flexibility in the timeline. If the state decides to opt into the expansion, it would have to allocate resources in its 2013-2014 budget, as the new Medicaid eligibility standards will kick in that fiscal year.

“In a very tight budget year, with revenues very tight, it becomes a question we have to look at seriously,” Corbett said.

While costs for newly eligible residents will be covered by the federal government in full, costs for residents who join and were previously eligible are not.

Without opting into the expansion, these “woodwork” costs would be $134 million, Corbett said, reading off notes he brought up to the podium ahead of time. A limited expansion would cost an estimated $178 million in that year, and full expansion would be almost $222 million, Corbett said.

By 2021, the state would need to spend more than $4 billion in connection with a full expansion, Corbett said.

Spending on Medicaid and other social services takes up around 38 percent of the annual budget as it stands, Corbett said. 

Walter November 26, 2012 at 11:22 AM
Not a problem. Just raise taxes to cover it. Dig Deep.
Amend November 26, 2012 at 01:56 PM
Seems the state has plenty of money to support it's prison industrial complex tho.
optimist November 26, 2012 at 03:51 PM
Ya and the state had no problem funding an expensive effort to demand photo ID's, pass an EITC tax credit that allows the state to refund people who give me money to private schools, and give additional tax breaks to corporations.
diamond li'l November 26, 2012 at 04:07 PM
Let's get real. This whole Obamacare situation is a drain on everyone including companies, states, medical services, and people in general. It is nothing but another way of getting taxes out of all of us. It really will do nothing at all to improve healthcare.
optimist November 26, 2012 at 04:27 PM
I agree we need to get back to denying people based on pre-existing conditions and making sure insurance companies make as much money as possible which is after all the real goal of health care.
Crestor Januvia November 26, 2012 at 04:59 PM
Maybe if the scum in the prison didn't commit crimes, we would not need the prisons. And the scum is a function of our lazy ass welfare society. Did you convert while you were in?
Crestor Januvia November 26, 2012 at 05:00 PM
Employers are already cutting employees back to 29 hours so they don't have to pay for Obamacare..... didn't figure on this, did you, crap for brains Obama. Now, the end result of your big idea is to cost MILLIONS extra pay as their hours are cut. MORON DEMOCRATS.
Crestor Januvia November 26, 2012 at 05:01 PM
Quick... pass a Federal law that says all employees have to work at least 30 hours... then the owners will fire them. MORONS.
mark wood November 26, 2012 at 05:26 PM
do what Louisana did, you'll love it, here is a hint, retired folk avoid this state for this reason. Give up?. look it up, its good you...lol
diamond li'l November 26, 2012 at 06:10 PM
Dear Optimist...that is not the issue. No one wants to deny people based on pre-existing conditions. You need the read all 2,700 pages of the heathcare?solution. It is not a way to improve healthcare. It is a form of taxation and they pull the wool over the eyes of people like you.
Amend November 26, 2012 at 11:28 PM
@Crestor- it's more accurate to state that the expansion of the welfare state is due to the ineffectual nature of our criminal justice system. Anyone who doesn't question a 500% increase in incarceration rates over the past 30 years is either blind or a fool.

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