Additionally, the expansion would create as many as 51,900 jobs on an annual average basis during that time period, according to the report. The researchers considered three scenarios involving low enrollment (234,455 people at a total cost of $10 billion from 2014 to 2020), intermediate enrollment (292,635 people costing $12.5 billion) and high enrollment (494,629 at a cost of $21.1 billion) from 2014 to 2020. The intermediate scenario is the most likely, according to the report.
Under the Patient Protection and Affordable Care Act, states have the option of expanding Medicaid eligibility to people earning up to 138 percent of the federal poverty level. The federal government will pay 100 percent of the expansion costs in 2014 to2016, 95 percent in 2017, 94 percent in 2018, 93 percent in 2019 and 90 percent in 2020 and beyond. As of Sept. 30,
On an annual average basis, Medicaid expansion would create about 24,600 jobs in the low-enrollment scenario, 30,700 in the intermediate scenario and 51,900 in the high scenario. From 2014 to 2020, overall business activity would increase by roughly $22 billion to $47 billion, the gross domestic product would increase by about $14 billion to $29 billion and worker earnings would go up by $8 billion to $17 billion, according to the report.
The aggregate impact under the intermediate scenario would be $28 billion in overall business activity, including a $17 billion contribution to GDP, which would contain $10 billion in earnings.
Overall, Medicaid expansion would significantly boost the state economy due to job gains and associated income, GDP growth, increased business activity and tax revenues, according to the report.
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