Will recipients need to treat these outlays as taxable income? If so, it’s worth bearing in mind that many of the eligible people will face a very high marginal tax rate [0] if they lose access to government problems as a result, especially if one or both of the chosen states didn’t expand Medicaid under the ACA [1].

[0] https://gregmankiw.blogspot.com/2018/06/an-effective-margina...

[1] https://www.kff.org/medicaid/issue-brief/the-coverage-gap-un...