The federal health reform law will help about six million uninsured Californians obtain health insurance by 2016, but it also will increase overall state spending by 7%, according to a new RAND study.

California-Specific Findings

• The proportion of California residents with health insurance will increase from 80% today to 96% by 2016;
• The number of uninsured Californians will decrease from 7.5 million today to 1.6 million by 2016;
• Enrollment in Medi-Cal, California’s Medicaid program, will increase by 58% by 2016;
• About 17% of nonelderly California residents will receive coverage through the state health insurance exchange by 2016; and
• The reform law will increase state spending by $2 billion annually by 2016 and by $4 billion annually by 2020.

Reasons for Changes in Coverage, Spending

Researchers said the reform law will increase access to health insurance because Californians will be able to obtain coverage through the state health insurance exchange and the forthcoming expansion of Medi-Cal. They also noted that the Medi-Cal expansion would contribute to the predicted higher levels of state spending even though the federal government is covering a substantial portion of the costs for newly eligible Medi-Cal enrollees.

Read more: http://www.californiahealthline.org/articles/2011/4/6/study-reform-law-to-expand-coverage-hike-state-spending.aspx#ixzz1KfhX4ZMc