In Illinois, Medicaid Expansion Faces Sudden Death
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Our expansion came with a "poison pill" |
Medicaid expansion has been a boon to the states that adopted it, both for their health programs and their economies, since the federal government is funding 95% of the cost of covering this newly-eligible population.
Proponents of ACA repeal say they want to phase out the program, by gradually reducing the subsidy amount, starting with with a modest dip to 90% in 2020, and then further reductions each year.
But for Illinois - and seven other states that enacted similar legislation -- the expansion is tied to the federal matching rate -- the so-called "poison pill" clause. The program is automatically canceled any time that match falls below 90%. Under versions of the congressional bills currently being debated, that is slated to happen in 2021.
Eliminations of the Medicaid expansion would mean a loss of health care for some 650,000 residents in Illinois, as well as a loss of jobs in the state and the prospect of hospital closures. And by removing funding from an already severely cash-dry state, it would also threaten the rest of the program, for Illinois residents who were covered by Medicaid before the ACA.
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