February 23, 2016

According to a study by the Kentucky Hospital Association, 20% of the people signing up for ObamaCare’s Medicaid expansion are leaving private health insurance to get the Medicaid health insurance free of charge from the taxpayers.

The study determined “The changing way patients get coverage under Obamacare also hurts hospitals, the report says. About one in five hospital patients who recently signed up for Medicaid previously had private health insurance, which reimbursed at higher rates, officials said.”

Medicaid only reimburses hospitals 82 cents for a dollar of care. So when people quit paying for their private insurance to get free Medicaid, taxpayers get clobbered and so do hospitals. It’s one reason Kentucky hospitals lose $7 billion under ObamaCare.

The Census Bureau says only 55% of the newly eligible Medicaid population work, even though they are single, childless, able bodied adults of working age. These are the people who may have had access to private health insurance. Since 20% of Medicaid expansion recipients are giving up private health insurance to get free Medicaid, this implies nearly 40% of the half of the population that actually has access to private insurance are giving it up to get the free benefits.

ObamaCare’s Medicaid expansion is another example of big government substituting taxpayer funded benefits for something many people used to handle themselves.