Beware Medicaid Bearing Gifts

“The Medicaid expansion is too good to pass up.” This line of argument appears increasingly in public discussions of the impact of the Supreme Court decision on the future of Obamacare (see, e.g., here). Curiously, at the same time 15 states have already announced that they will likely forgo the expansion.What exactly are governors considering?Obamacare included a provision requiring that states expand Medicaid to cover everyone up to 133 percent of the poverty line. States that refused would lose all federal funding for the state’s program. The Supreme Court ruled that this was an unconstitutional federal coercion of the states,
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