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Policy Brief: AHCA is a Bad Deal for Louisiana

The Republican plan to replace the federal Affordable Care Act would shift billions of dollars in Medicaid costs from the federal government to the state - and would reduce the tax credit for people who buy coverage through the federal marketplace by an average of $3,013.

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REPORT: Blueprint for a Stronger Louisiana

It's time to trade the never-ending cycle of budget shortfalls for long-term stability that allows for new investments in Louisiana’s communities. #InvestInLA

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NEW LBP REPORT: Fund diversions erode Louisiana’s safety net

In the two decades since the federal government overhauled America’s welfare system, Louisiana has steadily diverted money meant to help struggling families gain economic security.

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The Daily Dime

Gov. John Bel Edwards is scheduled to reveal his tax reform recommendations this afternoon at the Capitol (LBP will be writing separately about this).

Number of the Day

500+ - Number of Louisiana public school students with disabilities who received some form of corporal punishment in 2015-16 school year. Legislation backed by Gov. John Bel Edwards for the spring legislative session aims to outlaw the practice (Source: Louisiana Department of Education )

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Our Two Cents Blog

Medicaid: Fiscal Year 2018 State Budget

Posted on March 16, 2017

John Bel Edwards’ executive budget for fiscal year 2017-18 proposes to spend $2.2 billion in state general funds to provide Medicaid health coverage for 1.7 million Louisiana residents. That translates to a $229 million reduction in state spending on Medicaid – or 12 percent below current-year levels after accounting for inflation. But overall spending on Medicaid is projected to increase from $11.7 billion in the current fiscal year to $13.1 billion in the budget year that starts July 1. The growth is mainly due to a $1.8 billion increase in federal Medicaid funding, a 21 percent increase. The jump in federal funding is mainly due to the extension of Medicaid coverage to low-income, working-age adults.

Source: Division of Administration

Medicaid expansion has allowed more than 408,000 low-income Louisianans to gain health insurance since enrollment opened in July 2016. The Louisiana Department of Health expects another 50,000 to 60,000 people to enroll next year. But the costs to the state are low compared to other Medicaid enrollees due to a favorable federal match rate. In FY 2018, the state is responsible for only 5.5 percent of the costs of the expansion population, with the federal government picking up the remaining 94.5 percent. Additionally, the federal matching rate for the traditional Medicaid population (low-income children, seniors, and disabled adults) will increase from 62.3 percent in the current year to 63.7 percent next year, which saves the state $93 million.

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