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ACHI Health Policy Director: New Incentives for Medicaid Expansion Sweeten the Deal for Holdout States

May 7, 2021

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ACHI Staff

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ACHI Health Policy Director Craig Wilson talks to Fresh Take Georgia about new federal incentives for states to adopt Medicaid expansion under the Affordable Care Act. Wilson says the incentives will test how long states like Georgia are willing to continue holding out.

“With the enhanced match, the little sweetener that Congress put in the American Rescue Plan, I can’t really see from a fiscal standpoint that it’s a bad deal for any state that’s holding out,” Wilson says in the story.

See also Wilson’s blog post on health-related provisions in the American Rescue Plan Act.

Author

ACHI Staff

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The federal 340B Drug Pricing Program requires prescription drug manufacturers to provide drugs to certain healthcare organizations at heavily reduced prices as a condition of having their products covered by Medicaid. The program is intended to stretch federal resources as far as possible, expand access to prescription drugs for vulnerable populations, and protect clinics and hospitals from drug price increases.

Our new explainer looks at the history of the program, breaks down how it works, and notes relevant policy issues, including debates over:

  • How much financial benefit hospitals should receive under the program.
  • How the program impacts hospitals serving high proportions of low-income patients.
  • Whether the program should apply to drugs for low-income patients who are ineligible for Medicaid because they live in states that have rejected Medicaid expansion.
  • Whether there is sufficient transparency around the process.