New York's Health Insurance Exchange: Don't Pop the Champagne Quite Yet

“Obamacare advocates in New York have had good reason to celebrate. In contrast to Oregon’s and other state-based exchanges, New York’s exchange rollout was a relatively smooth, successful affair. Indeed by the time open enrollment closed, nearly 1 million enrollees were notched— split between Medicaid (525,000) and private health insurance (370,000). Moreover, state officials estimate that some 80% of enrollees were previously uninsured.
Now for some cold water: New York still has a long way to go. While the state surpassed its first-year goal, total enrollment remains only around 30% of the total eligible population.
Moreover, New York State’s Medicaid program, already among the nation’s largest and most expensive, just grew by 10%. And 87% of the new Medicaid enrollees were eligible under New York’s generous, old rules. This means the state will be picking up 50% of the cost for much of this population—not the 10% headline rate for the newly eligible, childless adult population. When all is said and done New York’s Medicaid program will remain bloated and expensive , claiming 1 in 5 New Yorkers as beneficiaries and 28% of the state budget.