Donnelly’s Vote for Obamacare Could Cost Indiana $3.6 Billion
Health care reform could leave Indiana on hook for billions
- By Eric Bradner, Evansville Courier and Press
- Posted May 13, 2010 at 12:06 a.m
INDIANAPOLIS — In a worst-case scenario, Indiana’s budget could have to absorb as much as $3.6 billion in new costs over the next decade if the 1.5 million Hoosiers made eligible for Medicaid by the new health care law enroll in the program, according to a new analysis by Gov. Mitch Daniels’ administration.
In a report presented Wednesday to the State Budget Committee, Indianapolis-based Milliman Inc., the actuary for the state’s Family and Social Services Administration, analyzed the cost of expanding Medicaid eligibility to families with incomes of up to 138 percent of the federal poverty level. That’s about $30,400 for a family of four.
According to the analysis, 522,000 adults and children could be added to Indiana’s Medicaid rolls.
That would increase the number of Hoosiers on Medicaid from 16.7 percent of the state’s population to 24.4 percent, costing about $1.8 billion over 10 years.
Another $576 million in increased costs comes because Indiana will be required to revamp its eligibility standards and provide Supplemental Security Income to 23,100 blind and disabled Hoosiers, according to the analysis.
The actuary anticipates another significant cost that it says comes out of necessity, but not federal mandate. The analysis suggested Indiana could be forced to spend $832 million to increase the reimbursement rates the state pays doctors who treat Medicaid patients.