Feds to waive insurance mandate for low-income people in states that don’t expand Medicaid

By Associated Press, Published: July 10


WASHINGTON — The Obama administration says low-income residents in states that decide to opt out of a big Medicaid expansion in the new health care law will not risk federal penalties as an unintended consequence.


The Supreme Court upheld most of President Barack Obama’s health care law last week, including its requirement that virtually all Americans carry medical insurance. But the court gave states the option of saying no to a Medicaid expansion expected to provide coverage to more than 15 million people, mainly childless adults. Officials in some Republican-led states are already saying they’ll opt out.


In a letter to governors Tuesday, Health and Human Services Secretary Kathleen Sebelius said low-income residents in those states who would have been eligible for the coverage will not face the individual insurance mandate.