By choosing not to expand Medicaid, Texas will lose an estimated $9.58 billion in federal funding in 2022, a new report says.
“States often seek to increase their share of federal funds, lobbying for military bases, procurement contracts, and highway funds,” researchers wrote. “Federal funding provides direct benefits and bolsters local economies. …Even states that do not value the health and health system benefits of expanding Medicaid may value the expansion as a source of funds that benefits the state economy.”
The study was conducted by the Commonwealth Fund, a foundation whose mission is to “promote a high performing healthcare system that achieves better access, improved quality, and greater efficiency, particularly for society’s most vulnerable.”
State officials have resisted Medicaid expansion, saying the expansion would leading to soaring state costs down the road. Medicaid currently covers 3.6 million Texans. Taking into account federal taxes paid by Texas residents, the net cost to taxpayers in the state in 2022 will be more than $9.2 billion.
The pattern repeats in non-expanding states nationwide. Florida’s decision to not participate will cost its taxpayers more than $5 billion in 2022. In Georgia, the state will forgo $4.9 billion in federal funding without the expansion of Medicaid, and in turn, $2.8 billion will flow out of the state in 2022.