3 Reasons why Medicaid is surging in RI

Johnny Luo M.D. President Doctor's Choice

November 16, 2016

More jobs are added to the RI economy and yet the number of individuals on

Medicaid is expanding. Here are 3 observations we're seeing as we work
with individuals on a day-to-day basis as to why.
1. The obvious reason is Medicaid expansion
In RI, Medicaid expansion has increased the Medicaid threshold for more
Rhode Islanders. More people qualify = more people enrolled.

• Adults with incomes up to 133% of poverty
• Pregnant women with household incomes up to 253% of poverty
• Children with household incomes up to 261% of poverty
• Women with household incomes up to 250% of poverty

Source: https://www.healthinsurance.or...
2. Lack of high paying jobs
There may be more jobs but there is still a lack of high paying jobs. If
you're employed at $11/hour, you're still going to qualify for Medicaid.
Many low paying employers (especially small businesses) are not
offering health insurance because it's cheaper for them to have everyone
go on Medicaid.
3. Retirees are using Medicaid as an estate planning tool
The high cost of nursing homes and the astronomical hikes in long term care
costs have forced many retirees to use advance estate planning tools to
circumvent high nursing home costs. The trick? Put your assets in a
trust, spend down whatever else you have, and on paper you look broke.
You'll qualify for Medicaid with the state picking up your nursing home
costs. With 10,000 baby boomers turning 65 each day, the growing
Medicare population is definitely looking at Medicaid to cover those
high nursing home expenses.
The rising enrollment in Medicaid comes at no surprise to us as we continue to see a low wage recovery here in RI.

About Dr. John Luo

Dr. John Luo is a graduate of the Warren Alpert Medical School of Brown University and president and founder of Doctor's Choice. Doctor's Choice’s mission is to offer numerous competitive Medicare Health Plan options and the guidance to help those Medicare eligible decide which option is most suitable for them. The company operates as a "choice model," meaning they are not tied to any particular insurance company. They are paid a fee from the insurance companies they work with to help clients with the enrollment process and their consultation is always free of charge.

Doctor’s Choice is located at 30 Quaker Lane, Suite 35, Warwick RI 02886. www.doctorschoiceusa.com.

For more information on Doctor’s Choice contact Dr. John Luo at 401-404-7373 or email john@doctorschoiceusa.com.