Posted on September 16, 2010 11:01
Categories: Legislative and Regulatory Issues | Employer and Individual Insurance
Topics: Cost-effectiveness | Employer-Sponsored Coverage | Health Care Reform | Individual Coverage | Legislation (National) | Spending
On August 18, state officials released a study by Milliman Inc. assessing the impact of the national health care reform law on Nebraska’s Medicaid program. The report projects that reform will increase Medicaid costs by $526 million to $766 million through 2020. For the report, Milliman assumes that Nebraska’s Medicaid program will enroll 108,000 to 145,000 additional beneficiaries under reform. Legislators critical of the report contend that Milliman did not adequately account for the potential Medicaid savings under reform, including a reduction in uncompensated care.
Full report: Patient Protection and Affordable Care Act with House Reconciliation - Financial Analysis (PDF | 101.11 KB) 
From the report:
Milliman has developed two estimates of the enrollment and fiscal impact associated with the Medicaid expansion and other related provisions of the Patient Protection and Affordable Care Act as amended by the Health Care and Education Reconciliation Act. We have developed (1) a mid-range participation scenario adnd (2) a full participation scenario. We have prepared our fiscal analysis to reflect the state impact for state fiscal years 2011 through 2020. We have adjusted all data to reflect the three month offset between the federal fiscal year and the state fiscal year as appropriate.
Enclosures 1 and 2 provide the fiscal impact results of the Affordable Care Act under a mid-range participation scenario (Enclosure 1) and a full participation scenario (Enclosure 2). The total fiscal impact to the Nebraska Medicaid budget during the next 10 years would be estimated to be in the range of approximately $526.3 million to $765.9 million based upon the assumptions outlined in this document. Table 1 illustrates the anticipated expenditure impacts to the Nebraska Medicaid budget for the period of SFY 2011 through SFY 2020 under each scenario.
Milliman. (2010). Patient Protection and Affordable Care Act with House Reconciliation - financial analysis.
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