This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

HMS Provides Comments On What The Supreme Court Decision On The Affordable Care Act Means For States

HMS, Inc., a wholly-owned subsidiary of HMS Holdings Corp. (NASDAQ: HMSY), today released its comments on what the Supreme Court Decision on the Affordable Care Act (ACA) means for States.

On June 28, 2012, the Supreme Court upheld the Affordable Care Act and most of the law’s provisions as constitutional. The long-awaited decision resolved many issues, but created several more — especially for states that now need to move forward.

What does the decision mean for states?

Answering that question requires revisiting the Act. Upheld provisions include the individual mandate, implementation of state health insurance exchanges, and such program integrity requirements as Medicaid Recovery Audit Contracts — the vehicle for states to contract with a vendor in order to identify and to recover improper Medicaid payments.

Though the Medicaid expansion provision of the Act was found to be constitutional, the Court ruled that the federal government could not withhold funding for existing Medicaid populations if a state elected not to expand its Medicaid qualification requirements to 133% of the Federal Poverty Level (FPL). The ruling also created a potential gap in subsidies between Medicaid and state health exchanges. In a no-expansion state with an income threshold for Medicaid eligibility that falls below 100% of the FPL, people who don’t qualify for Medicaid but fall short of 100% of the FPL — typically adults with no dependents — would not be eligible for federal subsidies in the exchange. In an expansion state, there would be seamless integration of subsidies between Medicaid and the exchange.

In short, states can choose to expand their Medicaid populations as per the Affordable Care Act guidelines or not. Now states must weigh the arguments for and against the expansion of their Medicaid populations.

On the pro side, Medicaid expansion would mean many of the state’s most needy uninsured would have health insurance coverage paid for almost exclusively by the federal government from 2014 to 2016. Supporters argue this would result in better care, close the subsidy gap outlined above, and reduce uncompensated expenses that are currently borne by states and providers.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,056.87 +6.12 0.04%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,817.2470 +6.4590 0.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs