The Economic Impact of Medicaid Expansion on Pennsylvania
Penulis
: Carter C. Price and Julie M. Donohue
Subyek
: The Economic Impact of Medicaid Expansion
Penerbit
: RAND Corporation
Ringkasan :The Affordable Care Act (ACA) includes two provisions that will transfer federal dollars to state
economies: an expansion of Medicaid to cover those earning less than 138 percent of the federal
poverty level (FPL) and health insurance subsidies for people with incomes between 100 percent
and 400 percent of the FPL. These coverage expansions are financed by changes to Medicare
payment policy, reductions in Disproportionate Share Hospital (DSH) payments, and new taxes
and fees, which transfer money from state economies to the federal government.
The June 2012 U.S. Supreme Court decision regarding the ACA gave state governments
discretion over whether to expand Medicaid, but most of the other provisions in the ACA—
including reductions to Medicare and DSH payments—will occur regardless of how states
handle the Medicaid provision. In determining whether to expand Medicaid, Pennsylvania’s
stakeholders may wish to consider the ACA’s overall economic effects on the state, both with
and without the Medicaid expansion. To inform this policy debate, we estimated the effects of
the ACA’s implementation in Pennsylvania (with and without the Medicaid expansion) on rates
of insurance coverage (by source), net flows of federal spending, change in gross domestic
product (GDP), state employment, state government spending and tax revenues, and
uncompensated care costs.
To estimate the ACA’s coverage and federal spending impacts, we used the RAND
COMPARE microsimulation model. We then applied the Regional Input-Output Modeling
System multipliers from the Bureau of Economic Analysis to determine the ACA’s broader
economic effects. We estimate these policy effects at the state level and within Pennsylvania’s
regions.
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