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February 22, 2013

Medicaid expansion is a good deal for Virginia because the federal government would pay 100 percent of the cost through 2016 and then no less than 90 percent after that. But some Virginia lawmakers, including Governor McDonnell, are raising concerns that the federal government will decrease that generous match rate and shift costs to states.

That’s a reasonable concern, and fortunately there is a solution: states can decide to change course and reduce coverage to pre- expansion levels if the federal government changes the match rate. In fact, many states considering expanding Medicaid coverage – including Virginia – are taking steps to make that reduction automatic.

>>Read the full report (pdf)

The Commonwealth Institute

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