Oklahoma Medicaid ‘Rebalancing’ is Simply Medicaid Expansion

Medicaid expansion is an expensive endeavor that many critics believe does not provide better or more affordable health care. Many of the expansion plans that states are now considering use federal dollars to expand their Medicaid programs to a larger portion of their state, creating new costs the federal government may not always be able to cover and leaving state taxpayers on the hook for the new liabilities.

Oklahoma legislators are now considering a Medicaid expansion proposal that has been pitched by its backers as an alternative to a full Medicaid expansion under the Affordable Care Act. The legislation, called the Medicaid Rebalancing Act, is similar to the expansion undertaken in Arkansas. It would shift about 175,000 pregnant women and children off of Medicaid and into private health insurance plans, which would be purchased with subsidies through the federal marketplace.

About 175,000 Oklahomans without health insurance would fill the vacated Medicaid spots through the Insure Oklahoma program, which requires co-pays and deductibles. This expansion could cost as much as $100 million, and it would be funded by a $1.50-per-pack cigarette tax increase, which would make Oklahoma’s cigarette excise tax the highest in the region, raising the average cost of a pack of

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