By NextBestFitRunning legacy Medicaid, Marketplace & Medicare systems in parallel
Old systems stay open for people not yet eligible until Year 4.
Result
$12.0B
Per resident, per year
$35
÷ 341.1M people
Per household
$91
÷ 132.2M households
How it's calculated
| # | Step | Arithmetic | Value |
|---|---|---|---|
| 1 | State Medicaid systems kept running | 50 states × $40,000,000/yr × 3 years | $6.0B |
| 2 | Federal & state exchanges kept running | $1.5B/yr × 3 years | $4.5B |
| 3 | Medicare legacy systems in parallel | $1.5B | $1.5B |
| 4 | Total one-time cost | $12.0B |
By year
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 |
|---|---|---|---|---|---|---|
| $0.0B | $4.0B | $4.0B | $3.0B | $1.0B | $0.0B | $0.0B |
Inputs used
| Input | Kind | Value |
|---|---|---|
| State Medicaid systems run in parallel | data, high confidence | 50 |
| Average annual cost per state Medicaid system kept running | estimate, medium confidence | $40,000,000 |
| Years run in parallel | policy, high confidence | 3 |
| Annual cost of federal + state exchanges | estimate, medium confidence | $1.5B |
| Medicare legacy systems in parallel | estimate, medium confidence | $1.5B |
Trade-off: Shrinks as each wave moves people off legacy systems.