Stimulus bill includes $127 billion for health care

The economic recovery bill that passed the House Tuesday calls for $128 billion in spending over the next two and a half years to states and individuals for health care (Source: “Relief Seen for Jobless and States in Health Care Plan,” New York Times, Jan. 28, 2009).

Among the provisions in the stimulus plan is the creation of a temporary entitlement allowing unemployed workers, and their spouses and children, to qualify for Medicaid, regardless of the family's income. Laid-off workers also would be given considerable subsidies to help retain the health coverage they had from their former employers. The White House estimates the changes would provide coverage for nearly 8.5 million people who otherwise would become uninsured.

According to the Congressional Budget Office, $87 billion would be used to increase the federal share of Medicaid, $29 billion would subsidize private insurance and $11 billion would pay for Medicaid for unemployed workers who would otherwise not qualify.