INVITED COMMENTARY
48 NCMJ vol. 78, no. 1
ncmedicaljournal.com
This commentary argues against Medicaid expansion in
North Carolina for 5 reasons: Expansion will reduce access
to care for highly vulnerable individuals who are already
enrolled in Medicaid; it is unlikely to save lives; it is unafford-
able in the long run; its current financing structure encour-
ages fiscal irresponsibility; and it will eliminate more jobs
than it creates.
T
here are at least a dozen good reasons for states not
to expand Medicaid under the Patient Protection and
Affordable Care Act (ACA) [1]. However, I will limit myself
to a discussion of the 5 most compelling reasons why North
Carolina should remain among the 19 states that have not
adopted this expansion.
Medicaid Expansion Will Reduce Access for
Existing Medicaid Recipients
Medicaid is among the worst forms of health insurance
offered in our state. Despite the comprehensiveness of
Medicaid coverage, many Medicaid beneficiaries have great
difficulty in locating a provider.
Before the ACA was enacted, 31% of doctors nationally
refused to accept new Medicaid patients, compared to only
17% refusing new Medicare patients and 18% refusing new
patients with private insurance [2]. There are many reasons
for this refusal to accept Medicaid patients, but a principal
driver is low reimbursement rates [3].
While Medicaid reimbursement is lower than payments
for other types of insurance, North Carolina actually pays
physicians higher Medicaid fees than some other states.
North Carolina’s physician fees under Medicaid are only 21%
lower than Medicare fees, compared to 34% lower nation-
ally [4]. This has resulted in a higher Medicaid provider
participation rate in North Carolina than in other states,
but access problems remain, with the average Medicaid
caseload per physician in North Carolina being about 30%
higher than the national average [5].
As this high caseload illustrates, the ACA is being imple-
mented during a period when we are already facing a phy-
sician shortage. Further, a model developed by the Cecil G.
Sheps Center for Health Services Research at the University
of North Carolina at Chapel Hill showed that, in the year
2020 alone, Medicaid expansion would increase the unmet
demand for physician services by over 25% [6]. In the
context of this physician shortage, it makes little sense on
ethical or clinical grounds to divert care away from existing
Medicaid beneficiaries, who are among our most vulnerable
populations—elderly individuals, persons with disabilities,
pregnant women, infants, and children. This is especially
true given that the lion’s share of the expansion population
consists of nonelderly able-bodied adults. It also seems
unwise to make promises to newly eligible Medicaid benefi-
ciaries on which we will be hard-put to deliver.
Medicaid Expansion Is Unlikely to Save Lives
One proponent of Medicaid expansion criticized the deci-
sion not to expand Medicaid by saying, “a thousand or more
[North Carolinians] die each year as a result of one of the
most cruel and indefensible decisions in N.C. history” [7].
However, there is no good evidence to support this hyper-
bole regarding the impact of health insurance on mortality
risk. Indeed, it is worth taking the time to understand the
origins of this misleading claim.
There is very mixed literature showing (possibly) that
having private insurance lowers mortality risk relative to
remaining uninsured [8]. These studies are inherently prob-
lematic in that they are observational studies rather than
randomized controlled trials. Consequently, no matter how
many sophisticated statistical adjustments we make, we can
never entirely rule out the possibility that observed differ-
ences in the rate of death between insured people versus
their uninsured “statistical twins” are due to unmeasured
differences between the 2 groups rather than to their insur-
ance status. Uninsured people, for example, may be more
willing to make risky life choices that are not captured in
the observed data (eg, driving without seatbelts or driving
drunk), and it may be that these choices, rather than their
lack of insurance, result in objectively higher death rates
compared to the death rate of their insured counterparts.
Even if the studies were flawless, there are 2 reasons
why it is inappropriate to use this literature to extrapolate
The Case Against Medicaid Expansion in North
Carolina
Christopher J. Conover
Electronically published January 23, 2017.
Address correspondence to Dr. Christopher J. Conover, Duke University,
Box 90392, Durham, NC 27705 (conoverc@duke.edu).
N C Med J. 2017;78(1):48-50. ©2017 by the North Carolina Institute of
Medicine and The Duke Endowment. All rights reserved.
0029-2559/2017/78114