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GAO report undermines prison savings claims
By newsok.com
Published: 10/22/2014

ONE argument for expanding Medicaid under Obamacare is that Oklahoma could “save” money by shifting costs to the federal government, including payment for the care of inmates in prisons. A new report by the U.S. Government Accountability Office indicates this claim is overstated.

Under Obamacare’s Medicaid expansion, the federal government will supposedly cover at least 90 percent of costs for those added to the program (although less for those currently eligible). This expansion group would include most prison inmates. Currently, state government pays all the costs of medical care for inmates. This is one reason a Leavitt Partners study predicted that the Oklahoma Department of Corrections would save $118 million through Medicaid expansion.

The GAO’s findings undermine that cost-shifting claim. Responding to congressional inquiries, the GAO examined Medicaid-expansion coverage of inmates. The report bluntly notes, “Federal law prohibits states from obtaining federal Medicaid matching funds for health care services provided to inmates …” with only limited exceptions.

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