Expanding Medicaid coverage would save Alaska money, a new state health department report said.
The report, released Friday, says the state will be able to offset new costs associated with expansion by reducing or eliminating contributions to programs that provide health care to those who would be eligible for Medicaid. It cites a possible $6.1 million in savings next year — including $4.1 million associated with providing health care to inmates — should the state opt for expansion.
The issue is a priority for Gov. Bill Walker, who campaigned on it last year. But it’s also expected to be debated by lawmakers grappling with how to deal with budget deficits exacerbated by a crash in oil prices. Concerns have been raised about the cost, as well as whether the federal government will continue to uphold its end of the deal. The federal government is expected to pay 100 percent of costs through 2016, stepping down after that to a minimum level of 90 percent by 2020.
The Senate Finance Committee has hired former state health commissioner Bill Streur to review the impacts of expansion. Streur served under Walker’s predecessor, Gov. Sean Parnell, who resisted expansion despite broad-based support, citing cost concerns.
Health commissioner Valerie Davidson has said the state’s participation would be made contingent upon the federal match not falling below 90 percent. She said she sees Medicaid expansion as a catalyst for reform of a program that is a major component of the state’s operating budget.
via PeninsulaClarion
image credit APEonline
