Lady Economist

The decision of some states not to expand Medicaid coverage to some of its neediest residents, should raise  serious questions  as to the role of government in serving its people.  The states, 25 in all, mainly those with Republican governors or Republican-controlled legislatures, have so far refused the proposed extension , in part because of concerns about long-term costs or government outreach.

Under the Affordable Care Act (ACA), states are required to provide subsidies for those who earn income up to 400% of the federal poverty level (FPL). In addition, the ACA recommends that Medicaid coverage (health insurance for those below the poverty line), should be expanded to those  up to 133% of the poverty line. However, since the Supreme Court ruled that such expansion cannot be mandatory, but rather is up to the discretion of the states, approximately half the states opted out. It so happens that more…

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