News and Tribune

Recent Local News

February 1, 2013

Medicaid costs a growing concern for state officials

Indiana expects to spend $170 million more over next two years due to federal health care law

INDIANAPOLIS — Indiana officials expect to spend an extra $170 million over the next two years on Medicaid benefits due to the federal health care law, with most of that money going toward coverage for children.

The 90,000 or so new enrollees are part of a “woodwork effect” projected by Milliman Inc., the actuary for the Indiana Family and Social Services Administration.

The term describes Hoosiers who already meet the state’s Medicaid eligibility requirements but for various reasons are not currently enrolled in the government-funded health insurance program.

The U.S. Supreme Court ruled that states can skip a portion of the health care law intended to require a Medicaid expansion to cover those earning up to 138 percent of the federal poverty line — or around 400,000 more Hoosiers. But new sign-ups resulting from the “woodwork effect” can’t be avoided.

“We anticipate the majority of this population to be children rather than some of the other individuals,” Milliman’s Robert Damler told the Indiana House Ways and Means Committee on Tuesday.

“Where we anticipate a lot of this enrollment to occur is when children are brought to an emergency room or a hospital setting — some sort of institutional setting,” he said.

Coverage for these additional Medicaid recipients, according to Milliman’s projections, will cost $47.4 million during the 2014 fiscal year and $94.1 million more during the 2015 fiscal year. The state will also face $30.7 million in extra administrative costs during that period.

It would cost Indiana roughly the same amount in Medicaid coverage and administrative costs — another $173 million or so — over that two-year period to pursue the expansion that President Barack Obama envisioned being mandatory before the U.S. Supreme Court ruled that states could opt out.

The state’s total spending on Medicaid is expected to land at about $1.65 billion during fiscal year 2013 — the current period, which runs from July 1, 2012 through June 30, 2013. That amount is projected to increase to $1.9 billion during fiscal 2014 and $2.1 billion the following year.

Text Only | Photo Reprints
Recent Local News
2013 Photos of the year

Take a look at our most memorable photos from 2013.

Twitter Updates
Follow us on twitter
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
AP Video
Obama Hopeful on Ukraine, Will Watch Russians Flamingo Frenzy Ahead of Zoo Construction Crew Criticized Over Handling of Ferry Disaster Agreement Reached to Calm Ukraine Tensions Raw: Pope Francis Performs Pre-easter Ritual Raw: Bulgarian Monastery Dyes 5000 Easter Eggs Diplomats Reach Deal to Ease Tensions in Ukraine U.S. Sending Nonlethal Aid to Ukraine Military Holder: Americans Stand With KC Mourners Obama Greets Wounded Warriors Malaysia Plane: Ocean Floor Images 'Very Clear' Sparks Fly With Derulo and Jordin on New Album Franco Leads Star-studded Broadway Cast Raw: Two Lucky Kids Get Ride in Popemobile Boston Bombing Survivors One Year Later Sister of Slain MIT Officer Reflects on Bombing
2013 Photos of the year

Take a look at our most memorable photos from 2013.