Details from an interim report by Maryland’s Health Care Reform Coordinating Council reveals that the Federal health care reform is projected to save Maryland $829 million over the next 10 years. Created in March, the council has been researching the affects the health care reform law will have on Maryland. The Gazette reports:
Administrative and infrastructure expenses related to enrolling the uninsured in the exchanges will increase the state’s cost. But other reform elements, including more federal aid for children’s health insurance and taxes applied to premiums on insurance products, will lead to savings and new revenue for the state, according to the report.
The state’s savings is expected to peak at $875 million in fiscal 2019 before declining in fiscal 2020, “when Maryland is projected to spend $46 million in that year as a result of health care reform than the state would have spent in that year in the absence of health care reform,” the report said.
The major components of the health care reform will take effect in 2014. A final version of the report is due to the Governor by January 1, 2011. Click here to read the interim report.