|[February 13, 2013]
Comprehensive Medicaid Expansion Report Details Positive Impacts on Colorado Jobs, Economic Growth and Household Income
DENVER --(Business Wire)--
By 2026, Colorado will add 22,388 new jobs, increase economic activity
by $4.4 billion and raise average annual household earnings by $608, if
the state expands Medicaid eligibility. That's according to an
independent report commissioned by the Colorado
Health Foundation and released today.
The report, "Medicaid
Expansion: Examining the Impact on Colorado's Economy," also finds
that expanding Medicaid to 138 percent of the federal poverty level will
require fewer state dollars than not doing so.
Prepared over several months by Charles S. Brown, president of Charles
Brown Consulting Inc., the report provides a thorough analysis of what
Medicaid expansion would mean for Colorado's economy. With detailed
projections through fiscal year 2025-2026, the report examines costs,
savings and economic impacts associated with expanding or not expanding
Medicaid. According to the report's estimates, while the Colorado
economy is projected to grow under both scenarios, Medicaid expansion
will enhance that growth.
Key findings include:
In FY 2025-26, the last year of the study period, a comparison of the
"no expansion" and "full expansion" options shows that the following
economic impacts will occur as a result of the decision to fully
The economy, as measured by state gross domestic product (GDP),
will be 0.74 percent larger than if Colorado does not expand its
Medicaid program. Expansin will result in just less than $4.4
billion in additional state economic activity in 2025.
Average annual household earnings will be $608 more with full
Medicaid expansion compared to no expansion.
Colorado will have 22,388 more jobs in 2025 if the state fully
While Medicaid expansion is not free, the combination of federal
support for expansion populations and state savings in programs
makes full expansion less costly to the General Fund than no
expansion until FY 2020-21.
By FY 2025-2026, state General Fund appropriations would be a
cumulative $133.8 million less for full Medicaid expansion than if
the state chose not to expand.
The larger economy that would result from Medicaid expansion will
generate more state tax revenue without an increase in tax rates.
In FY 2025-26, tax revenue is projected to be $128 million higher
due to a decision to expand Medicaid. In each year, the
combination of the additional revenue generated from the larger
economy and savings in other General Fund programs is sufficient
to fund the state's share of the cost of Medicaid expansion.
Compared to no expansion, Medicaid expansion will add an additional
275,000 Coloradans to Medicaid enrollment by FY 2025-26. Those added
to Medicaid insurance include 209,000 newly eligible adults without
dependent children, 44,000 newly eligible parents and an additional
22,000 currently eligible but not enrolled children and parents.
Medicaid expansion will reduce the number of uninsured non-elderly
Coloradans by 189,000 by FY 2025-26 and reduce the percentage of
uninsured in the non-elderly population from 11.1 percent to 7.7
percent compared with non-expansion.
"Expanding public health insurance to greater numbers of vulnerable
Coloradans - in many cases, hard-working families - will bring more
jobs, strengthen the state's economy and generate higher household
earnings, which benefit all Coloradans," said Anne Warhover, president
and CEO of the Colorado Health Foundation. "The economic boost from
Medicaid expansion makes it fiscally responsible, and the return on
investment will result in a more competitive Colorado by helping make
our state the healthiest in the nation."
Under current law, the federal government will pay all expansion costs
in Colorado from 2014 to 2016, with its share gradually going down over
several years to 90 percent in 2020 and future years. As the report
makes clear, the economic benefits of expansion will help cover the
state's share of the costs. "After looking closely at how Colorado would
be impacted by expansion and no expansion, we found that expansion,
while involving costs, will have a significant positive impact on the
Colorado economy," said lead researcher Charles S. Brown.
About the Colorado Health Foundation
Health Foundation works to make Colorado the healthiest state
in the nation by encouraging healthy living, increasing the number of
Coloradans with health insurance and ensuring they have access to
quality, coordinated care. The Foundation invests in the community
through grants and initiatives to health-related nonprofits that focus
on these goals, as well as operating medical education programs to
increase the health care workforce.
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20130213005240/en/
[ Back To Insurance Technology's Homepage ]