Republicans price Medicaid expansion at $118 billion as governors testify

“With this report, we see the true cost to states, who are already facing a collective $175 billion budget shortfall, of this unsustainable expansion… It’s time for Congress to peel this program back by putting states, not the federal government, back in charge.”

Last year’s healthcare reform law marked the largest expansion of Medicaid since its creation in 1965. The law adds about 15 million people to the state-federal program’s rolls starting in 2014.

“The laws enacted in Washington have a profound impact on state budgets, and it is critical we provide Governors with the flexibility they need to create innovative health programs in a way that helps the people they serve, preserves quality, and reduces the financial burden,” said Energy and Commerce Chair Fred Upton (R-Mich.), who released the report along with Hatch.

The Obama administration is keenly aware of the political risks of the Medicaid expansion as states continue to struggle with their budgets. On Monday, the president told the governors in town for the winter meeting of the National Governors Association that they should create a bipartisan committee to discuss with his Health and Human Services Department ways to make the program more flexible.