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Study Shows Arkansas Privatized Medicaid Could Improve Stability

(Medical-NewsWire.com, July 27, 2013 ) Athens, GA -- According to a new study recently released, the use of health care law's Medicaid expansion will assist individuals buy private insurance and thus provide a more stable coverage type to those with fluctuating incomes.

The New England Journal of Medicine found that the privatized Medicaid expansion that is expected could help lower the changing disparity of subsidized private insurance.

States such as Arkansas have been looking into the option that would allow them to not take part in the expansion. Instead the state would be place any new eligible Medicaid individuals into a health care law's insurance exchange wherein they would opt to buy private insurance.

Such insurance could be purchased with the help of tax credits, according to experts.

The model is said to provide stability for both families and individuals who had to alternate between multiple coverage types, said the study.

The authors of the study, Sara Rosenbaum and Benjamin Sommers stated that the type of coverage from the state would cut out some of the back-and-forth for the individuals. That would mean lowered logistical problems and cost, which would in turn keep more covered.

“Given the politics surrounding the Medicaid expansion, using Medicaid to buy private insurance will continue to generate great interest," the authors wrote.

"Ultimately, the most important aspect of premium assistance may be its appeal to conservative politicians who are skeptical of the ACA generally and the Medicaid expansion in particular — even if the policy differences between an expansion featuring robust Medicaid managed-care and private insurance coverage are less dramatic than they might first appear."

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