The Maine Wire
  • News
  • Commentary
  • Maine Wire TV
  • About
  • Contact
Facebook Twitter Instagram
Trending News
  • Maine State Police Blindsided as Speaker Talbot Ross Claims They Support “Racial Profiling” Bill Written by ACLU
  • No Discipline for Social Worker Who Gave 13yo Girl Breast Binder Without Telling Mother, Says Maine State Board
  • State House Kills “Right to Work” Legislation Prohibiting Employment Conditional on Payment of Union Dues
  • Trump Indicted on Federal Charges in Classified Documents Probe as Biden Faces Bribery Allegations
  • Gov’s Late-Term Abortion Bill Heads to House Amid Acrimony [Podcast]
  • Maine Wire Podcast: Carroll Conley on Abortion, LGBT, and Religious Liberty in Maine
  • Dems Block Debate on Gov’s Late-Term Abortion Bill, Refuse GOP Questioning of Medical Experts
  • Partisan Vote Ends Brakey’s Bid for Welfare Work Requirements
Facebook Twitter Instagram
The Maine Wire
Login
Saturday, June 10
  • News
  • Commentary
  • Maine Wire TV
  • About
  • Contact
The Maine Wire
Home » News » Maine’s dysfunctional experiment with Medicaid expansion
News

Maine’s dysfunctional experiment with Medicaid expansion

Jacob PosikBy Jacob PosikAugust 10, 2017No Comments3 Mins Read
Facebook Twitter Email LinkedIn Reddit
Share
Facebook Twitter LinkedIn Email

This November, Maine voters will be asked whether they want to expand Medicaid eligibility to able-bodied, childless adults between the ages of 21 and 64 who earn up to 138 percent of the federal poverty level (FPL).

In 2002, under Governor Angus King, Maine expanded Medicaid eligibility to childless adults earning up to 125 percent of the FPL. This move was supposed to boost Maine’s economy, reduce the uninsured rate, end charity care at Maine hospitals and improve the health care system for every Mainer.

However, none of these claims came to fruition, and unfortunately, the same arguments are being used in favor of Medicaid expansion today.

Medicaid expansion in 2002 was supposedly going to grow Maine’s economy, however the promised economic boost was never realized. In the three years prior to expansion, Maine’s average annual GDP growth was roughly 6 percent. In the three years following Medicaid expansion, the rate slowed by roughly one-third, falling to about 4 percent. In other words, there was no “huge economic boost” after expansion in 2002, as the growth rate of Maine’s GDP actually declined.

The same result was seen regarding Maine’s uninsured rate. The purpose of Medicaid expansion was to provide health insurance to a previously uninsured segment of the population. However, before expansion in 2000, Maine’s uninsured rate hovered around 12 percent. In 2010, the uninsured rate remained at the same level.

This is largely due to a phenomenon called “crowd out.” Crowd out occurs when public health insurance programs are expanded and those who previously had private insurance decide to enroll in the government program rather than personally finance their health insurance. Instead of insuring more people, Medicaid expansion in 2002 resulted in many privately insured Mainers opting into public health insurance, leaving taxpayers responsible to foot the bill for their decision once eligibility widened.

Today, supporters of the ballot question insist only 70,000 Mainers will enroll under expansion. However, according to the Census Bureau, there are 144,000 Mainers who fit the eligibility criteria, and another 80,000 who are close enough to the income threshold that they could marginally reduce their earnings in order to obtain public health insurance.

Proponents also claimed that charity care at Maine hospitals would decline because more Mainers would be insured, but much like the rest of their claims, this one does not withstand factual scrutiny. While Maine’s uninsured rate continued to hover around 12 percent, charity care at Maine hospitals soared in the years following expansion.

In 2002, Maine had just over $50 million in uncompensated care at hospitals throughout the state. By 2011, charity care at Maine hospitals skyrocketed to nearly $200 million. This hospital debt, totaling roughly $500 million, can be attributed to Maine’s expansion of Medicaid in 2002. The debt wasn’t paid off until Gov. Paul LePage successfully restructured the state liquor contract.

Everything proponents of Medicaid expansion have claimed about the program is patently false. After Maine’s experiment with Medicaid expansion in 2002, there was no economic boom. The uninsured rate remained flat. Charity care at Maine hospitals went through the roof, and Mainers had the foot the bill for healthy people to enroll in government subsidized health insurance.

The math is simple; Maine taxpayers cannot afford Medicaid expansion.

Affordable Care Act Commentary Featured Hospital Debt Medicaid Medicaid expansion Obamacare
Previous ArticleMedicaid expansion jeopardizes services for the truly needy
Next Article Cost overruns a certainty with Medicaid expansion
Jacob Posik

Jacob Posik, of Turner, is the director of communications at Maine Policy Institute. He formerly served as a policy analyst at Maine Policy and editor of The Maine Wire. Posik can be reached at jposik@mainepolicy.org.

Related Posts

Maine State Police Blindsided as Speaker Talbot Ross Claims They Support “Racial Profiling” Bill Written by ACLU

June 9, 2023

No Discipline for Social Worker Who Gave 13yo Girl Breast Binder Without Telling Mother, Says Maine State Board

June 9, 2023

State House Kills “Right to Work” Legislation Prohibiting Employment Conditional on Payment of Union Dues

June 9, 2023

Leave A Reply

Recent News

Maine State Police Blindsided as Speaker Talbot Ross Claims They Support “Racial Profiling” Bill Written by ACLU

June 9, 2023

No Discipline for Social Worker Who Gave 13yo Girl Breast Binder Without Telling Mother, Says Maine State Board

June 9, 2023

State House Kills “Right to Work” Legislation Prohibiting Employment Conditional on Payment of Union Dues

June 9, 2023

Trump Indicted on Federal Charges in Classified Documents Probe as Biden Faces Bribery Allegations

June 9, 2023

Gov’s Late-Term Abortion Bill Heads to House Amid Acrimony [Podcast]

June 9, 2023
Newsletter

News

  • News
  • Campaigns & Elections
  • Opinion & Commentary
  • Media Watch
  • Education
  • Media

Maine Wire

  • About the Maine Wire
  • Advertising
  • Contact Us
  • Submit Commentary
  • Complaints
  • Maine Policy Institute

Resources

  • Maine Legislature
  • Legislation Finder
  • Get the Newsletter
  • Maine Wire TV

Facebook Twitter Instagram Steam RSS
  • Post Office Box 7829, Portland, Maine 04112

Type above and press Enter to search. Press Esc to cancel.

Sign In or Register

Welcome Back!

Login below or Register Now.

Lost password?

Register Now!

Already registered? Login.

A password will be e-mailed to you.