(The Center Square) – A new report argues that while Medicaid expansion in Wisconsin could have short-term financial advantages, the expansion will be costly to those living in the state and not worth it long term.
States that have expanded Medicaid have higher costs for those who are privately insured, the quality of care for Wisconsin residents would not increase, the number of projected enrollees in expansion state’s is 160% higher than estimated and the rate of improper payments rose dramatically in those state, according to the report from the Wisconsin Institute of Law and Liberty.
“Medicaid expansion has never been a worse idea than it is right now,” said Will Flanders, WILL’s Research Director. “Wisconsin is right to have rejected this plan in the past and is right to reject it going forward. We don’t want to put private payers on the hook and Wisconsin taxpayers as a whole on the hook for millions of dollars of more spending.”
Wisconsin Policy Forum has said that expanding Medicaid could save an estimated $1.7 billion over the upcoming biennial budget by using federal funds instead of state funds and that Medicaid expenses will cost the state an additional $1.1 billion over the next two years.
Wisconsin implemented a partial Medicaid expansion to cover childless adults up to 100% of the federal poverty level while 96.1% of doctors accept new private insurance patients and 74.3% accept new Medicaid patients.
“The more people who go onto the government system, the more the private system has to make up the deficit between what’s covered as a percentage of reimbursement and what’s not,” Assembly Speaker Robin Vos said. “By keeping the expansion from happening in Wisconsin, we have had no individuals or almost none who don’t already have access to health care but we have ensured that we do not increase the cost on the private sector.”
The WILL report also said that federal budget cuts could alter the reimbursement rate, moving it from the current 90% match to 60%, which would cost Wisconsin an estimated $285 million in new costs.
The amount of estimated improper Medicaid payments grew from $35 billion in 2018 to $90 billion in 2020.
“Expanding Medicaid is a Trojan horse for higher costs without the promise of improved care. Wisconsin would be better off finding ways to lower health care costs by reducing government intervention, and by allowing innovation to improve the quality of care for all Wisconsinites,” said WILL Policy Associate Miranda Spindt.
