Healthcare News & Insights

States weigh pros and cons of health reform on their budgets

The newly passed health care law is generally seen as a boon to patients and most providers. But how individual states will fare is much less clear.

The Patient Protection and Affordable Care Act (PPACA) offers additional funding for some programs and will provide access to insurance for many who don’t currently have it. But even those benefits won’t outweigh the hidden costs in some states.

States like Massachusetts and Wisconsin, which have relatively few uninsured residents due to expanded state programs, stand to gain significantly: Their additional outlay of funds will be minimal, and they’ll still be eligible for billions in federal funds.

Other states like Alabama and Texas, with many more uninsured residents and limited Medicaid coverage, face significant costs getting everyone covered — millions more are  now eligible.

For example, to help close a budget deficit, Arizona slashed insurance coverage for 350,000 residents just in the past month. Under PPACA, those people will be back on the insurance rolls — and the state has to foot the bill.

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