alexa Medicaid Expansion and the use of Account-based Health
ISSN: 2375-4273

Health Care : Current Reviews
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Research Article

Medicaid Expansion and the use of Account-based Health Plans

David Randall1*, Stephen T Parente2 and Ramzi Abujamra3

1American Research and Policy Institute, Suite 200, 1250 Connecticut Ave, NW, Washington, DC., USA

2Carlson School, University of Minnesota, Minneapolis, MN, USA

3American Research and Policy Institute, Washington, DC., USA

Corresponding Author:
David Randall
Executive Director and Resident Scholar
American Research and Policy Institute
Suite 200, 1250 Connecticut Ave, NW
Washington, DC. USA
Tel: (202) 558-6364
E-mail: [email protected]

Received date: June 25, 2014; Accepted date: July 13, 2015; Published date: July 20, 2015

Citation: Randall D, Parente ST, Abujamra R (2015) Medicaid Expansion and the use of Account-based Health Plans. Health Care Current Reviews 3:134. doi:10.4172/2375-4273.1000134

Copyright: © 2015 Randall D, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

 

Abstract

Objectives: U.S. Medicaid expansion has added over 11 Million new enrollees since 2010 and U.S. states are attempting to integrate the increased population as well as addressing fiscal constraints. Account based plans (such as Health Savings Accounts) have been successfully used to control utilization while providing enrollee flexibility. We suggest that a portion of the 55 million Medicaid beneficiary population can be enrolled in account based plans and assist state and federal Health Insurance Exchanges with the ‘churn’ that occurs between the two systems while controlling costs.

Methods: We use publicly available per capita Medicaid spending in each state to estimate the population that could be enrolled in an account based plan and apply factors from previous private market research in estimating the reduction in utilization trend and spend for the selected population.

Results: We find that using conservative enrollment and utilization trend assumptions that states could collectively see a reduction in spend of over $800 million to over $1 billion in a fiscal year.

Conclusions: States can enroll select Medicaid populations that could benefit from having a potentially seamless product that would allow individuals to transition between Medicaid plans and state and federal Health Insurance Exchange products while reducing utilization and spend.

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