Good News for Drivers Medicaid Expansion Spreading

There was good news for drivers in the 2018 midterm elections, voters in three more states approved Medicaid Expansion. Therefore, 37 states are expanding Medicaid.

Medicaid Expansion is good for drivers because it can reduce the number of car insurance claims. To explain, Medicaid provides health insurance to low-income individuals.

Expanded Medicaid means low-income people will be less likely to sue; or file insurance claims when an auto accident injures them. Instead, taxpayers will pick up the tab in the form of Medicaid. Uninsured people are more likely to sue because it is often the only way they can pay for medical care.

How Medicaid Expansion can Lower Car-Insurance rates

Theoretically this can reduce auto insurance premiums because bodily injury claims one of auto insurers’ biggest expenses. To explain, bodily injury liability coverage and medical-payments coverage (MedPay) cover medical bills for people injured in auto accidents.

Obviously, people without health insurance will be more likely to file  bodily injury or MedPay claims. Then insurers pass the cost of higher bodily injury and MedPay claims onto drivers in the form of higher premiums.

People will be less likely to go through the hassle of filing a Bodily Injury or MedPay claim if Medicaid will take care of their medical costs.

Voters in Three States Approve Medicaid Expansion

The good news is that voters in three states approved Medicaid Expansion ballot initiatives in the November 6 midterm elections.

Medicaid expansion passed in Utah, Idaho, and Nebraska, the Kaiser Family Foundation reports. However, expanded Medicaid is far from a done deal in those states.

Medicaid Expansion Finally Coming to Maine

For example, Maine voters approved Medicaid expansion last year but Governor Paul LePage (R) keeps blocking it. Notably, Superior Court Justice Michela Murphy ordered LePage to expand Medicaid on 21 November 2018. LePage keeps vetoing bills to fund Medicaid Expansion to block it.

However, LePage’s actions mean little because Democrat Janet Mills will replace him in January. To explain, observers expect Mills to expand Medicaid, The Hill reports.

Medicaid Expansion is on the march, sort of

Notably three states Wisconsin Kansas and Michigan, elected Democratic governors favourable to Medicaid Expansion. However, Medicaid expansion in Kansas and Wisconsin will require approval of the Republican state legislatures.

On the other hand, Montana voters rejected Medicaid expansion largely because supporters tied it to a tax increase. In detail, a ballot measure would have funded Medicaid expansion with increased tobacco taxes.

Thus 37 of the 50 states have expanded Medicaid to the levels allowed by Obamacare. More Medicaid expansion is coming because a group called the Fairness Project will sponsor ballot measures in more states, Forbes reports.

Will Nevada Expand Medicaid to everybody?

Even greater Medicaid expansion is possible in Nevada. Last year, Republican Governor Brian Sandoval vetoed a measure that would have allowed everybody in the state to receive Medicaid.

However, Democrat Steve Sisolak will replace Sandoval, who is term-limited and in January. Hence, Sisolak can sign Medicaid for all legislation if it passes a future state legislature. Medicaid for All is likely to return in Nevada because Democrats control the State Legislature.

In detail, Medicaid for all means the state Medicaid program could cover that anybody by paying a premium. Currently, Medicaid  only covers low-income people, Therefore, Nevada will be the first US state with single-payer (government) health insurance for all if Medicaid for All returns.

Medicaid for all is even better news for drivers because it will make health insurance cheaper for the middle class. Thus, health insurance will cover more people and there will be fewer incentives to file bodily injury claims. Hence, Medicaid for all could reduce auto insurance premiums.

A massive Medicaid expansion benefits America’s drivers. I have to wonder if it will continue and far Medicaid expansion will go.

 

 

 

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