Tupelo, MS – As the new year approaches next week, Mississippi has lost nearly $1 billion due to the decision not to expand Medicaid.
The state has incurred a loss of $1 billion, not just since the onset of the rapidly approaching 2024, but since the start of the fiscal year on July 1.
Critics of Medicaid expansion argue that the digital tracker has its shortcomings.
At a news conference in October, state Auditor Shad White revealed details of his $2 million study aimed at finding ways to reduce state government spending. He noted that he did not consider Medicaid expansion as a potential avenue for saving money or increasing state revenue.
Medicaid expansion and the health care exchange are included in the Affordable Care Act. Individuals making up to $20,120 a year can enroll in Medicaid under the expansion, with the federal government covering most of the expenses. Mississippi remains among the 10 states that have chosen not to participate in Medicaid expansion.
Individuals earning over $14,580 each year can access private insurance via health insurance exchanges, while those with lower incomes may receive federal assistance to help cover the costs of that insurance.
Amid the COVID-19 pandemic, President Joe Biden’s legislation led to a notable rise in federal subsidies for individuals obtaining insurance through the exchange. The rise in subsidies prompted numerous Mississippians, in need of health care, to seek assistance through the exchange.
Mike Chaney, the state Insurance Commissioner, along with Gov. Tate Reeves and others, have voiced worries that individuals might lose their private health insurance and be compelled to enroll in Medicaid if lawmakers decide to expand the program.
However, it is not noted that the improved benefits introduced by the Biden administration are set to end in December 2025 unless Congress decides to renew them. The upcoming Donald Trump administration has not shown any signs of maintaining the increased subsidies.
The Trump administration, under the guidance of billionaire Elon Musk, is exploring options to reduce federal spending.
There are rumors that Medicaid expansion might be at risk under Musk’s plans.
