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For Immediate Release

Date: 01/15/14

Medicaid Expansion Study a Warning Against Signing Maine Taxpayers Up for ObamaCare

Third-party analysis confirms DHHS, OFPR findings: Expansion would cost millions

AUGUSTA - House Republican leadership encouraged their colleagues to consider the findings of an Alexander Group study released Friday before voting on the controversial proposal to have Maine pay for a massive expansion of Medicaid under ObamaCare. The analysis estimates that the medical welfare expansion will cost the state $807 million over the first 10 years and lead to nearly two in five Mainers being enrolled in the government program.

"This is the most thorough analysis of the consequences of ObamaCare's welfare expansion we have seen yet," said House Republican Leader Ken Fredette of Newport. "I'm glad that the Department leveraged matching funds from the Obama Administration to produce this informative report before lawmakers again consider expansion."

The analysis uses a model that considers such variables as the state's poverty rate, the number of eligible people losing their private health coverage, changes to federal matching funds, and health care inflation to provide a realistic picture of how many Mainers would enroll in expanded Medicaid over the long term and what the state's cost would be.

"This data speaks for itself, and I hope that the Administration's opponents will consider the data itself and not resort to personal attacks against the source in a partisan attempt to distract from and discredit this valuable report," added Fredette. "When it comes to decisions about whether to commit massive amounts of Maine taxpayers' dollars over the long term, we should be looking for more information, not less."

Assistant House Republican Leader Alex Willette of Mapleton agreed, adding that the Alexander Group's study is the latest in a series that shows just how large of a commitment ObamaCare's welfare expansion would be for Maine taxpayers.

"Both the Department of Health and Human Services and the legislature's nonpartisan budget office have projected that welfare expansion will cost the state millions over the long term," he said. "This study provides an even deeper analysis and suggests that the cost may be even greater than we originally thought."

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David Sorensen
Maine House Republicans
Tel: (207) 205-7793