Michigan has become the latest state to indicate that they would expand Medicare coverage to persons up to 133% of the Federal poverty level as called for in the health care reform law. The Supreme Court ruling upholding the health care reform law created a wrinkle in the implementation when they made the Medicare expansion optional at the discretion of the states. Because of the political nature of things, it is news when a Republican governor goes along with health care reform policy under PPACA. However, a slight bit of good news for employers in states where Medicaid eligibility has been expanded, is that it reduces the number of persons eligible to receive subsidies for exchange provided policies. Medicaid covered individuals are not eligible to receive a subsidy for exchange coverage. A person receiving a subsidy for exchange provided coverage is what triggers the employer mandate penalties. So if some of the lowest paid persons in the workforce are accounted for by Medicaid, it reduces the risk to the employer somewhat.
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