Report: Medicaid benefits to Calif. outweigh cost

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Updated: 2/19/2013 5:35 pm

SACRAMENTO, Calif. (AP) — The nonpartisan Legislative Analyst's Office says the benefits of expanding health care for California's poor under the Affordable Care Act outweigh the costs.

Its report released Tuesday urges lawmakers to adopt an optional Medicaid expansion that features an enhanced match from the federal government. It recommends the expansion even though the state will take on additional costs.

The report estimated adding about 1.2 million new enrollees could cost California an additional $300 million to $1.3 billion a year starting in 2020, when the federal government will no longer pay the full cost of the Medicaid expansion.

Gov. Jerry Brown has committed to expanding Medicaid, known as Medi-Cal in California, for people who make up to 138 percent of the federal poverty line, or about $15,400 a year for an individual.


©2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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