Economic Effects of Medicaid Expansion in Michigan

From the post by The Commonwealth Fund:

Background

The debate over whether and how to repeal the Affordable Care Act often focuses on the cost of the Medicaid expansion—an area of concern for some states, which starting this year must assume a portion of the coverage costs for newly eligible enrollees. Less attention is paid to the economic benefit expansion states receive from the influx of federal money, including increased employment and tax revenue. The authors of this Commonwealth Fund–supported study assessed the economic impact of Michigan’s Medicaid expansion. The Healthy Michigan Plan has enrolled roughly 600,000 low-income residents.

What the Study Found

Michigan’s Medicaid expansion will create at least 30,000 jobs in the state each year from 2017 to 2021 and raise personal income by more than $2 billion each year. The added economic activity is projected to yield $145 million to $153 million annually in state tax revenue.

Read the full post from The Commonwealth Fund.

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