Financial Analysis Site Assesses Obamacare’s State Costs, Benefits
December 30, 2013 by Jerry Howard
A financial analysis organization says today that regardless of where states land on the political spectrum or health care reform, it’s clear all taxpayers will share financial responsibility for the Affordable Care Act. WalletHub.com recently released a reort examining the return on investment for taxpayers in all 50 states and the District of Columbia.
It considered Illinois as a state that’s expanding its Medicaid offering while categorizing Indiana as not expanding its Medicaid program. The report found that taxpayers in states that are expanding Medicaid coverage could receive a return of as much as $5.11 for each additional dollar in their healthcare-related income taxes, for a 511% ROI.
Conversely, WalletHub.com says taxpayers in Medicaid-nonexpansion states are losing as much as $8.03 in free federal funding for each dollar they are set to pay in order to fund health care improvements in other states.
Its report shows that Illinois is nearly at break-even level, projected to get $.99 for every support dollar paid, while it says Indiana is sacrificing $1.98 for every dollar paid to support the Act.
“Taxpayers across the country are on the hook for Medicaid expansion costs no matter what, as federal income taxes are used to fund the program,” WalletHub Chief Executive Officer Odysseas Papadimitriou said. “The only question is whether or not they get anything in return. As things currently stand, the expected benefits vary significantly based on geography, and depending on one’s current health care coverage, this could even be a reason to move.”
Papadimitriou is a former Capital One senior director and current CEO of the personal finance social networks WalletHub.com and credit card website CardHub.com.
Vermont is listed as the largest healthcare plan beneficiary with unlimited benefits, and Mississippi is listed as losing the most, losing $8.03 per dollar taxed for Obamacare.