Without Medicaid Expansion, Employers Face Higher Tax Penalties Under ACA

By /
Study By Brian Haile
Senior Vice President for Health Policy
Jackson Hewitt Tax Service Inc.
Key Findings
  • States that do not expand Medicaid leave employers exposed to higher “shared responsibility” payments under the Affordable Care Act (ACA).
  • The associated costs to employers could total $876 million to $1.3 billion each year in the 22 states that have opposed, are leaning against, or remain undecided about expanding Medicaid. By way of example, the decision in Texas to forego the Medicaid expansion may increase federal tax penalties on Texas employers by $299 to $448 million each year.
  • Any projections of the “net” costs of Medicaid expansions should reflect the very real costs
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