Rick Young Insurance's Blog

In March, the Supreme Court will hear arguments on issues concerning the Affordable Care Act. One of the less talked about but very important issues is if the Medicaid expansion goes too far in encouraging states to comply.

The Affordable Care Act will bring along many new rules, some that state governments might not agree with. The only way states can ignore these rules is if they don't receiving federal support for Medicaid. But no state can afford to lose federal funds.

• In all the states, at least half of the Medicaid funding comes from the federal government.
• By 2013, the average state is expected to have over one-fourth of its budget put towards Medicaid.
• To cover the loss of federal support, a state would have to put almost another 40 percent of its budget to Medicaid.

By making compliance with the new rules necessary for federal support for Medicaid, the Affordable Care Act could be crossing a line. The Supreme Court will ultimately decide if this is out of line.