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State’s actuary releases figures on future of Indiana Medicaid
e-Reports, Oct. 9, 2012
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With or without a Medicaid expansion, Indiana will see substantial increases in the cost of its Medicaid program. Milliman Inc, the state’s actuary, provided the Family and Social Services Administration (FSSA) new estimates about the enrollment and financial impact of the Affordable Care Act (ACA).

“In addition to the customary annual increase in our Medicaid budget, this analysis indicates even without expansion, Indiana will experience additional costs of nearly $612 million over a seven-year period starting in 2014,” said Michael A. Gargano, FSSA Secretary.

The cost to implement the expanded coverage to all adults at or below 133 percent of the Federal Poverty Level, as required by the ACA, would be about $1.6 billion over seven years. But even without the expansion, costs for Medicaid will grow to nearly $612 million.

“This analysis confirms Medicaid spending under the Affordable Care Act will consume a greater and greater share of the state’s budget, with that growth coming at the expense of other priorities such as K-12 and higher education,” said Adam Horst, director of the Indiana State Budget Agency.

The National Association of State Budget Officers reports Medicaid spending is rapidly approaching one quarter of all state expenditures. See a copy of the Milliman report here.

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