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Do State and Local Governments Benefit from Federal Health Insurance Reform?

March 9, 2012

It is no secret that the federal government has passed and has been reforming the health insurance scheme in the United States as part of an effort to have more Americans covered.  Aside from benefitting those without health insurance the impacts of reform can be seen on the state and local government level as well.  State and Local governments spend billions of dollars on health insurance for their public employees, as well as, provide coverage for those not insured.  Furthermore, this group of public employees and state and local governments pay a “hidden tax” represented by higher premiums  to allow for the coverage of those who cannot afford it.

In 2009 the White House produced a report that analyzes the impact that health insurance reform on the federal level, which has been enacted since, would have on state and local governments.  The analysis includes 16 states that represent a general overview of the nation.  The analysis includes what the individual states spend on care for the uninsured, what the estimated costs of the state from Medicaid expansions would be, and what the bottom line will be.

The White House Report can be found here.

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