Refusal to Expand Medicaid May Cost Texas Employers $448 Million in Fines
Governors who refuse to expand their Medicaid programs for the poor may cost employers in their states as much as $1.3 billion in federal fines, a study found.
A clause in the 2010 health-care overhaul penalizes some employers when their workers arent able to obtain affordable medical coverage through the company. Employers can avoid those fees if their workers qualify for Medicaid as part of an expansion that as many as 22 states have rejected, according to a report today by Jackson Hewitt Tax Service Inc.
Without Medicaid, a shared responsibility payment of as much as $3,000 may be triggered for each employee who cant get insurance through their company. In Texas, the largest state to refuse to increase Medicaid, employers may be liable for as much as $448 million in fines, the study found. In Florida, where the legislature has refused an expansion supported by Governor Rick Scott, employers may pay as much as $219 million.
A lot of businesses have taken the position that they oppose a Medicaid expansion because it would increase their taxes, Brian Haile, senior vice president for health policy at Jackson Hewitt in Parsippany, New Jersey, said in an interview. The irony of this, or the paradox, is that the opposite may be true, at least for some businesses in some states.
More at http://www.bloomberg.com/news/2013-03-13/refusal-to-expand-medicaid-may-cost-employers-1-billion.html .