Rep. Gene Green Statement on Report that Medicaid Expansion Lowers Premiums

WASHINGTON, DC — Congressman Gene Green (TX-29), the Ranking Member for the Subcommittee on Health, released the following statement in response to the U.S. Department of Health and Human Services’ (HHS) report showing that expanding Medicaid lowers Marketplace premiums by about 7 percent in those states:

“I have repeatedly called for the expansion of Medicaid in Texas because it is one of the most cost-effective and efficient ways to improve the health of our state. An expansion in Texas would mean that 1 million people would gain health insurance coverage – 50,000 of which live in our District,” said Green. “By rejecting Medicaid expansion, Texas not only forgoes its citizens’ access to affordable and comprehensive healthcare but also gives up billions in economic benefits. It is time to expand Medicaid in Texas and do right by Texans.”

According to a report by the National Public Radio (NPR), the decision by Texas to reject expansion of Medicaid will cost the state an estimated $100 billion in federal dollars over a decade. At the same time its hospitals are baring a $5.5 billion annual cost for treating uninsured patients. Those uncompensated costs in turn are being covered by taxes and insurance premiums paid by the state's businesses and residents, who are also footing the bill for expanding Medicaid in states that agreed to accept federal funds to offer coverage to nearly all low-income adults.

According to the HHS report, “As of February 2016, 20 million individuals have gained health insurance thanks to provisions of the ACA, including Medicaid expansion and the establishment of Health Insurance Marketplaces. A comparison of cross-border counties shows that, on average, the benchmark premium in the Marketplace was 7% lower in 2015 in states that expanded Medicaid relative to states that did not.”

To read the HHS report, visit: https://aspe.hhs.gov/pdf-report/effect-medicaid-expansion-marketplace-premiums