Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
February 27, 2015

Privatizing Medicaid Expansion Brings Higher Costs

Florida and Arkansas are working with the federal government to channel the funds intended for the Medicaid expansion in President Obama’s health care reform law to instead subsidize private insurance for low-income residents. But National Journal notes that there is “just one catch: The private policies will cost about 50 percent more than traditional Medicaid.”

“Choice and competition have worked well in other parts of our economy, but they have not demonstrated savings in health insurance. Compared with government programs, private insurers tend to pay higher prices to doctors and hospitals, to have higher administrative costs, and, in competitive sectors, to lack enough market share to render improvements in the delivery of care.”

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