Michigan could scale back Medicaid expansion if costs become too burdensome

From MLive: (click for full article)

Supporters of the Affordable Care Act are hopeful that Michigan will expand its Medicaid program now that a federal official has said states could opt out down the road.

But a spokesman for House Leader Jase Bolger, R-Marshall, said that’s not necessarily enough to sway his opinion in favor of the measure.

The Affordable Care Act calls for an expansion of Medicaid that in Michigan would add at least 400,000 people to the federal-state health insurance program for the poor and disabled.

The Supreme Court upheld most of the law but struck down penalties for states that do not expand Medicaid. Starting in 2014, the Affordable Care Act would expand Medicaid to people earning less than 133 percent of the poverty level, about $30,656 for a family of four. (Some reports say 138 percent, since the first 5 percent of income is not counted.)

Some states have been reluctant to support Medicaid expansion since they’ll eventually have to pick up a portion of the cost. The federal government will cover 100 percent of the additional costs until 2016 and drop to 90 percent by 2020.