WV Medicaid = Dollars and Sense for Our State Economy
We all know that Medicaid saves lives. Medicaid also helps West Virginia families survive financially. And Medicaid is a critical lifeline for rural health providers. Medicaid boosts our state economy and creates West Virginia jobs.
These facts are important as we educate our state legislators about why Medicaid Matters for West Virginia.
Medicaid = Financial Stability for West Virginian Families
Medicaid associated with significant reduction in people’s unpaid bills of all types, amount of debt sent to collection agencies, & credit card debt.
- 10 percentage point increase in Medicaid eligibility reduces personal bankruptcies by 8 percent
- Medicaid covered families 40% less likely to borrow money or skip paying bills to cover medical expenses http://www.nejm.org/doi/full/10.1056/NEJMp1108222
Medicaid = Lifeline for Rural Providers
Rural hospitals’ financial status improved in Medicaid expansion states (states like West Virginia that opted to raise Medicaid eligibility to cover more adults with higher federal matching dollars per the Affordable Care Act)
- Medicaid revenue as a share of total hospital revenue rose 33%
- Operating margins increased by 4 percentage points (difference between total revenues & operating costs) https://www.cbpp.org/research/health/affordable
Medicaid = Good Medicine for West Virginia Economy
Every $1 that West Virginia spends on Medicaid covered health care is matched by $2.9 from the federal government. The total annual Medicaid budget is $4.4 billion but $3.4 billion is new federal dollars pulled into the state generating significant jobs & business activity.
WVU Bureau of Business & Economic Research used macro-economic modeling to quantify positive impact of Medicaid on WV economy in the report “Medicaid’s Impact on West Virginia’s Economy”:
- $10 m Medicaid state spending = $29 m in new federal dollars =
- $49 million new overall annual economic output
- 520 new jobs
- $1.8 million in additional state tax revenue