States Not Accepting Medicaid Expansion Create Problems for Employers

Medicaid, A New Health-Care Fight by Louise Radnofsky.  The Wall Street Journal.  February 10, 2013.

When the Supreme Court ruled that states could opt-out of Medicaid expansion under the Affordable Care Act, a problem were created.  In those states that opt-out, employers are bracing for increased costs.  Under the ACA as originally conceived, employers with lower paid workers could have allowed Medicaid to fund health insurance for their workers through the state or federal insurance exchanges.  With some states at present declining to participate in the expansion, these employers are bracing for the funding cost of insurance for their employees or payment of non-tax deductible penalty. Employer funding insurance would be deductible for tax purposes.