NCPA - National Center for Policy Analysis

New Report Details Medicaid Cost under New Health Law

March 3, 2011

The health law will cost state taxpayers at least $118.04 billion through 2023 -- more than double the Congressional Budget Office's (CBO) recent estimate of $60 billion through 2021, according to a new report from the House Energy and Commerce Committee. 

The enactment of the Patient Protection and Affordable Care Act in March 2010 was the largest expansion of the entitlement program since its inception more than 45 years ago.  Half of those obtaining health care coverage under the new law will get it through Medicaid.  The committee report provides a state-by-state analysis of the financial impact the new health care law will have on states and demonstrates the unsustainable fiscal burden this new law will foist upon taxpayers.

  • California, for example, will spend at least another $19.4 billion on Medicaid.
  • The Texas Health and Human Services Commission estimates that Texas will be forced to spend another $27 billion, which is more than the program's entire annual budget today.
  • Kentucky will get hit with $675 million in news costs to Medicaid, and Idaho found that the law would grow its Medicaid program by nearly 50 percent.

Source: "Joint Congressional Committee Report Details New Health Law's Fiscal Burden on Fragile State Budgets, Sustainability of Medicaid Program," House Energy and Commerce Committee, March 1, 2011.

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