Healthcare Industry News > Maryland votes to extend Medicaid benefits

Maryland votes to extend Medicaid benefits

The Maryland state Senate voted 30 to 17 to pass a bill which would expand Medicaid benefits to cover a larger portion of uninsured adults.  A similar bill a few months earlier had not even been put on the floor for a vote because of objections to the funding for the increase.  The bill was stopped because it was connected to an increase in taxes on cigarettes, a declining source of revenue for the state.

The current bill’s vote came after a narrow vote to approve a tax increase on tobacco but also increases in sales and corporate taxes.  Money from legalizing slot machines in the state – a bill being voted on by Maryland residents – would also help cover the costs.   The expansion’s costs are estimated at $600 million.  The goal of the expansion is to eventually provide health insurance for one-eighth of the 800,000 state residents who currently have no medical coverage.

Initially, the program would add 20,000 parents and their children to Medicaid.  Another 50,000 adults who do not have children might be added later.  Plus, small businesses which agree to offer some type of wellness program to employees would be eligible for an annual $1,000 subsidy to encourage them to provide health insurance.

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