Medicaid Expansion Would Have Major Effect On State Economy

Constitution building 1890

Constitution building 1890 (Photo credit: Wikipedia)

Topics: Medicaid, Marketplace, States

Aug 13, 2012

The Atlanta Journal-Constitution examines issues surrounding the expansion of Medicaid coverage under the health law and notes that the extra federal money coming into the state would have a $72 billion economic impact over 10 years.

Atlanta Journal-Constitution: Medicaid: Flood Of Funds Awaits OK In Georgia
Viewing the Medicaid expansion from a business perspective makes it harder to reject, some economists argue, especially at a time when Georgia’s economy needs every boost it can get. The federal dollars would cycle through the state’s economy and have an overall economic impact of $72 billion between 2014 and 2023, said Jeff Humphreys, director of the University of Georgia‘s Selig Center for Economic Growth. That computes to $16 in impact from federal dollars for every $1 from state coffers, Humphreys projected (Teegardin and Williams, 8/12).

The Atlanta Journal-Constitution: Medicaid: Projection At Issue
Budget gurus and health officials in every state are trying to project the costs and benefits of the Affordable Care Act. Georgia is no exception. As state officials try to decide whether Georgia will agree to expand its Medicaid program, putting a price tag on that decision has been the first order of business. Some experts who have reviewed the numbers say the state’s projections may overstate the likely costs (Teegardin, 8/12).

The Journal Constitution also offers a look at governors’ views on Medicaid block grants and what other states have decided on expansion.

The expansion also makes news in Arizona —

The Arizona Republic: Brewer Advisers Form Health Pact To Push To Expand Medicaid
Two key advisers to Gov. Jan Brewer are attempting to create a coalition of hospitals, insurance plans, providers and other players to push Arizona to expand Medicaid under federal health-care reform. Last week, the board of a statewide group of human-services providers agreed to hire Chuck Coughlin and Peter Burns, and the state’s largest hospitals and health plans are considering signing on (Reinhart and Wingett Sanchez, 8/12).

In other Medicaid news —

The Atlanta Journal-Constitution: Judge Orders Drug For Premature Birth To Be Covered By Medicaid
A judge has ordered the state to halt a policy that made it difficult for women to get Medicaid coverage for a pricey drug that prevents premature births. U.S. District Judge Charles Pannell granted a victory to K-V Pharmaceutical Co., which had accused the Department of Community Health of preventing pregnant women from getting its drug, Makena. State officials had argued that a readily available custom-compounded drug costs far less and has no major safety issues (Rankin, 8/10).

This is part of Kaiser Health News‘ Daily Report – a summary of health policy coverage from more than 300 news organizations. The full summary of the day’s news can be found here and you can sign up for e-mail subscriptions to the Daily Report here. In addition, our staff of reporters and correspondents file original stories each day, which you can find on our home page.

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