Louisiana Gov. John Bel Edwards’ administration estimates the Democratic governor’s planned Medicaid expansion will save the state $677 million in its first five years.
The Associated Press reports the savings would come, according to the state Department of Health and Hospitals, from taking advantage of enhanced federal financing rates for health services.
The projections presented today to the state Senate health committee contrast with estimates provided to lawmakers in previous years when Republican Bobby Jindal was governor. Jindal opposed Medicaid expansion.
Edwards’ health secretary, Rebekah Gee, told senators the Jindal administration’s cost estimates were “inflated to be unrealistic.”
Edwards updated senators personally on the planned expansion, saying enrollment will begin on June 1. Republicans in the state Legislature have blocked expansion efforts in prior years. But today, both GOP and Democratic senators appeared to embrace the idea. Edwards, on his first full day in office on Jan. 12, signed an executive order to expand the Medicaid program in Louisiana.
In a news release, the governor’s office says the state will pay 10% for the cost of care for the uninsured as opposed to the 40% the state currently pays. About 70% of the enrollees will be full-time workers in the food service, tourism and construction industries, Edwards’ office says. The governor’s office estimates that more than 300,000 Louisianans will benefit from the expansion.Â
