"Not Accepting the Federal Funds for BadgerCare Makes Us All Pay More for Health Insurance"

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  • In numerous studies, it has been found that in states that do not accept the federal Medicaid funds, even those who would NOT be covered by Medicaid (BadgerCare) end up paying more for private health insurance


  • The main reasons is that when people lack health insurance they utilize the emergency room when serious issues arise, often without ability to pay the emergency room bills out of pocket. This is known as "uncompensated care"


  • And, because hospitals must recoup that cost somehow, they increase the price tag on private insurance covered procedures. Meaning that we all pay more even if we never would have been covered by Medicaid. This phenomenon is known as "cost-shifting"


  • The other reason why is because those who are denied Medicaid are not required to purchase health insurance. The Affordable Care Act's individual mandate doesn't apply to them because it was assumed they would be covered by Medicaid. As a consequence, those denied Medicaid who end up purchasing coverage in advance are those that know they need it, those who are more likely to have large medical bills. Thus, people with serious and/or chronic health conditions, instead of being covered by Medicaid, require insurance companies to spend more time and resources on them; making insurers raise prices. This is known in insurance world as "adverse selection".


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