Calif. governor says Medicaid expansion will cost $350 million

By Sam Baker - 01/10/13 02:30 PM ET

Participating in the Medicaid expansion in President Obama's signature healthcare law will cost California about $350 million, according to the budget Gov. Jerry Brown (D) released Thursday.

The costs to the state come mostly from people who are eligible for the program now but not enrolled, and are expected to join once the high-profile expansion takes effect.

The federal government initially covers the entire cost of the health law's Medicaid expansion — but only the expansion. The existing state-federal partnership still applies to people who are already eligible for the program.

Brown's budget proposes two options for proceeding with the Medicaid expansion, according to a report in the Sacramento Bee. One would not cover long-term care for newly eligible people, while the other would leave those coverage decisions up to county governments.

Brown's estimates of a $350 million price tag for 2013 and 2014 come as Florida Gov. Rick Scott (R) was forced to stop using inaccurate estimates of the Medicaid expansion's cost. Scott had said the 10-year cost would approach $25 billion, but slashed that figure to only $5 billion.