July 01, 2012

Opting Out Of Medicaid Expansion Is Tough Call For States

Albany partner Matt Amodeo was quoted in Law360 on the Supreme Court’s ruling on the health care law, which appears to make it easier for states to opt out of the law’s Medicaid expansion.

The court ruled that the federal government could not revoke all funding for Medicaid if a state refuses to go along with the expansion, and many states have already declared that they would not expand their Medicaid rolls in 2014.

Those states, however, will face a tough set of questions about how opting out could affect their hospitals, their residents and their budgets.

For example, for states that opt out, what happens to the law’s massive cuts in disproportionate share hospital payments for hospitals that treat more than their share of uninsured patients?

These cuts are set to go into effect starting in 2014 and unless Congress changes the law or the state steps up its own subsidies, hospitals could take a major hit in states that opt out of the expansion.

Matt, partner in the Health Care Practice Group, said “[t]he hospitals are really going to get jammed. I think you could expect, at the state level, some heavy lobbying.”

To read the entire article, click the link below.

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