Efforts to repeal or replace the Affordable Care Act could result in a financial impact for Maryland of over $2.2 billion in fiscal year 2018, and well over another $2 billion by fiscal year 2020, according to a new state report.
The state government’s Department of Legislative Services published a report Tuesday on the impact of the ACA in Maryland, and how plans to revise or repeal it may impact the state’s economy and health care systems.
Here are some of the potential effects of repeal/replace plans:
* If enhanced federal funding is repealed, Maryland must decide whether to maintain and how to fund Medicaid expansion. The net cost to Maryland would be $1.27 billion in fiscal 2018, rising to $1.50 billion in fiscal 2022.
* Loss of an enhanced matching rate for the Maryland Children’s Health Program would increase general fund spending by an estimated $68.0 million in fiscal 2018, $72.8 million in fiscal 2019, and $19.5 million in fiscal 2020.
* The state will need to decide whether to continue the state’s health exchange and how to continue funding it. State law mandates an annual appropriation of at least $35 million to support the exchange.
* Repeal of the ACA could impact Maryland’s all-payer model, which governs hospital rate setting. Maryland could eventually lose the model contract — a kind of pilot program for the state — putting in jeopardy $2.3 billion in Medicare and Medicaid payments to state hospitals per year.
Click here to read the rest of the article written by Morgan Eichensehr over at the Baltimore Business Journal.