ACA Expansion of Medicaid Passes in Missouri
3 minute read:
In yet another triumphant win for the Affordable Care Act, the state of Missouri approved and passed the expansion of Medicaid.
The expansion comes after nearly 53% of voters ruled in favor, and is slated to take effect beginning July 1, 2021. Missouri joins 38 other states and the District of Columbia in expanding Medicaid under the ACA.
Missouri is second only to Oklahoma in passing the expansion of Medicaid amid the COVID-19 global health crisis. And in good timing, as the states were seeing a spike in COVID-19 cases. According to an article by Vox, “Once the expansion takes effect in those two states next year, an estimated 340,000 people who currently have no affordable health insurance option will become eligible for Medicaid.”
The move for Missouri to follow so closely behind Oklahoma in expanding Medicaid under the ACA is part of a larger theme of red-leaning states swaying in the other direction and recognizing the benefits of the ACA as COVID-19 continues to ravage the country. The expansion of Medicaid would not only provide affordable coverage to residents; it could also potentially save the state an estimated $39 million a year.
COVID-19 or not, however, the expansion of Medicaid has played a big part in helping provide affordable coverage for Americans. A study conducted by the American Society of Clinical Oncology (ASCO) found that states that expanded Medicaid as a result of the ACA saw nearly a 30% drop in cancer-related deaths.
Another study published by the National Bureau of Economic Research cites that 15,600 deaths could have been averted if all 50 states implemented an expansion of Medicaid, according to an article by Vox.
The expansion of Medicaid first started in 2014 and allowed states the ability to provide residents with coverage based on their income level rather than a disability. As a result, thousands more Americans have been able to qualify for the government-subsidized program.
Now, only 12 states remain in having not expanded Medicaid. If the trend continues, it is only a matter of time until they join the majority in expanding.
The continuing expansion of Medicaid is evidence that the ACA is becoming entrenched in our healthcare ecosystem. From preventing cancer deaths to providing health coverage to those who otherwise wouldn’t have been able to obtain it, the expansion of Medicaid, and the ACA as a whole, have played a key role amid COVID-19. And with the 2020 election only a few short months out, the ACA is likely here to stay for good.
For employers, that means that complying with the healthcare law’s Employer Shared Responsibility Provision (ESRP), also known as the Employer Mandate, is essential.
As a reminder to employers in conjunction with the Employer Shared Responsibility Payment (ESRP), the ACA’s Employer Mandate, Applicable Large Employers (ALEs), organizations with 50 or more full-time employees and full-time equivalent employees, are required to offer Minimum Essential Coverage (MEC) to at least 95% of their full-time workforce (and their dependents) whereby such coverage meets Minimum Value (MV) and is affordable for the employee, or be subject to Internal Revenue Code (IRC) Section 4980H penalties.
The IRS announced that it would begin issuing ACA penalty letters such as Letter 226J after July 15. If your organization has received a Letter 226J for failing to comply with the healthcare law, contact us to learn about our ACA Penalty Reduction Services as well as our full-service ACA Complete services.
To learn more about ACA compliance in 2020, click here.
|
|
