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Published on : Jun 04, 2015

The non-reimbursement cost of hospitals for treating patients could be brought down by US$ 4.5 billion next year if the coverage of Medicaid was stretched to the poorest citizens of the states that have not already done so, stated a new report by the White House, which was rolled out on Thursday.

Medicaid is a polarizing health care initiative that is aimed at the poor and disabled in the United States. Twenty eight states have already stretched their Medicaid coverage are on the path of reducing these non reimbursed care costs by nearly the same amount, an estimated US$ 4.4 billion, next year, stated the White House Council of Economic Advisers. 

The states are unwilling to stretch the Medicaid coverage, people who have private insurance end up paying more for their own health care as well as insurance. Their tax money eventually goes on to help pay for all the non reimbursed care costs of people who are uninsured. If Medicaid is expanded, the report states, then the standard of living of the residents of a state will improve. 

Medicaid is a health care program that is being funded by the federal as well as the state government. However, the federal government covers the entire cost of the extension of the program. It brings coverage to families of four who earn less than US$ 32,500 a year and singles who earn no more than US$ 16,000 per year. These individuals and families cannot afford to buy subsidized insurance on the Obamacare exchanges. As a result, a decision by the Supreme Court had left it upon the states to decide whether to expand Medicaid to cover these residents or not.