Corbett Rejects Medicaid Expansion

On February 5, 2013, Governor Corbett announced that, at this time, Pennsylvania will not be accepting federal funds to expand Medicaid. Under the Affordable Care Act, states can choose to expand Medicaid eligibility, which, in Pennsylvania, would offer coverage to at least 500,000 currently uninsured adults. The federal government would pay for 95% of the cost of the expansion in the first three years ($12 billion in Pennsylvania), with its contribution gradually reducing to 90% over subsequent years.

By not expanding access to Medicaid, the Commonwealth misses opportunities to provide needed health coverage to over half a million adults, reduce the burden on hospitals that often provide emergency care for those who are uninsured, and stimulate the economy with an injection of funds. However, Governor Corbett believes that the expansion would be “financially unsustainable” for Pennsylvania given the reduction in federal aid over time.

Currently, 19 states and the District of Columbia have agreed to participate in the expansion.

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