The small business insurance bill is catching fire this week. State officials are ramping up the rhetoric about its impact on their insurance laws. But a CBO report released last night also predicts that states would save money on their Medicaid programs if the bill passed in its current form:
On net, CBO estimates that enacting S. 1955 would reduce direct spending for the federal share of Medicaid expenditures by $235 million over the 2007-2011 period and $790 million over the 2007-2016 period. In addition, the bill would result in estimated Medicaid savings to states totaling $180 million over the 2007-2011 period and $600 million over the 2007-2016 period.
Last year alone, Medicaid cost the states and the feds $330 billion, as in "billion" with a "B." So the Medicaid savings would be miniscule to say the least.
