Another report touts benefits of Medicaid expansion
Medicaid expansion has brought more than $600 million each year into Montana’s economy, creating nearly 6,000 jobs and $350 million annually in personal income, according to a new report.
The report was released Monday as the state Legislature gets ready to deal with the Montana Health and Economic Livelihood Partnership Act (HELP), a program catered to Montana and created in 2015 to bring in federal Medicaid expansion.
It found that although Montana pays for a share of the coverage, the savings created by the program along with state revenue generated more than offset the cost to the state.
HELP requires enrollees to pay premiums and copays for services. It sunsets June 30, 2019, and continuing the program is expected to be one of the big issues this legislative session. There were 94,594 Montanans participating in the program as of November.
The analysis was conducted by the University of Montana’s Bureau of Business and Economic Research and ABMJ Consulting and was commissioned by Headwaters Foundation and the Montana Healthcare Foundation.
It follows findings of earlier reports released by other supporters of the HELP act.
The Montana Hospital Association noted the report also found it created as many as 7,500 jobs, brought a 1 percent increase in employment and income statewide, had a positive net impact on the state budget of $6.5 million, after factoring in new tax revenues generated as a result of Medicaid expansion.
The net fiscal impact on Montana’s budget is positive, the report claimed, even in 2020 when Montana will begin paying the maximum 10 percent share of the costs.
The program improved the financial stability of Montana’s hospitals by substantially reducing uncompensated care. The report notes that hospitals in Medicaid expansion states are six times less likely to close than those in non-expansion states.
Rep. Ed Buttrey, R-Great Falls, who sponsored legislation creating the HELP act while a state senator in 2015, is drafting his own bill on Medicaid expansion.
In his bill, people who are on Medicaid need to reach a quota of what he calls “community benefit.” Buttrey said this is a long list of different actions people can take to reach the quota.
On Jan., 7, Gov. Steve Bullock touted a reported that Medicaid expansion has added $270 million to the Montana economy annually since it was passed. The report was produced by the Montana Department of Labor and Industry and Montana Department of Revenue.