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Saturday, May 25, 2013
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    Institute Index:

    Will Southern governors sacrifice their economies by seceding from the Medicaid expansion?

    by | 3, Add your Comment | Jul 13, 2012

    Of 29 studies that looked at the economic impact of Medicaid, the joint federal-state health care program for low-income Americans, percent that found Medicaid spending has a positive impact on state economies: 100

    Rank of Medicaid among the largest sources of federal funds for states: 1

    Amount Mississippi appropriated to Medicaid in fiscal year 2012: $819.3 million

    Amount Mississippi drew down from the federal government for its program as a result: $2.4 billion

    Amount that spending generated in salaries in Mississippi: $2.365 billion

    Amount that spending added to Mississippi’s general fund: $156.6 million

    Rank of Mississippi among the states that would see the largest influx of federal funding from the Medicaid expansion that’s part of the Affordable Care Act, a.k.a. “Obamacare”: 1

    Rank of Medicaid among the greatest economic development engines for Mississippi, according to a state representative who’s considered one of the legislature’s leading experts on the program: 1

    Percent of Mississippi residents who live in poverty: 22.4

    Rank of Mississippi among the states with the highest poverty rates: 1

    Rank of Mississippi among the states with the highest unemployment rates: 8th

    Current unemployment rate in Mississippi: 8.7

    Amount Mississippi would be expected to receive between 2014 and 2019 under the Medicaid expansion: $9.8 billion

    Percentage that amount represents of Mississippi’s yearly gross state product: 10

    Date on which Mississippi Gov. Phil Bryant (R) said he planned to resist Medicaid expansion in his state: 6/28/2012

    Of the 19 states with rates of uninsured residents higher than the national average, number in the South (see accompanying chart; click for larger version): 9

    Of those nine Southern states, number where the governors have said they are refusing or considering to refuse the Medicaid expansion: 7

    (Click on figure to go to source. Map from the Gallup-Healthways Well-Being Index. Chart from the paper “Give Me Liberty or at Least Your Votes: A Study of Governors’ Altruism on Health Care” by John Hudak with the Brookings Institution.)

    ###
    Sue Sturgis

    Sue Sturgis

    Sue Sturgis joined the Institute for Southern Studies in November 2005 as director of the Institute's Gulf Coast Reconstruction Watch, a project to document and investigate the post-Katrina recovery. A former staff writer for the Raleigh News & Observer and Independent Weekly (Durham, N.C.), Sue directs and regularly contributes to the Institute's online magazine, Facing South, with a focus on energy and environmental issues. Sue is the author or co-author of five Institute reports, including Faith in the Gulf (Aug/Sept 2008), Hurricane Katrina and the Guiding Principles on Internal Displacement (January 2008) and Blueprint for Gulf Renewal (Aug/Sept 2007). Sue holds a Masters in Journalism from New York University.

     

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    • http://likethedew.com Lee Leslie

      An important story that attempts to overcome some of the lies spread about the cost -- especially in the South that really needs both the care and the economic impact.
      Thank, Sue

    • hannah

      Some people seem geared towards manipulating the material world and transforming their environment and others are fixated on managing other people to provide benefits to them. Those who resist the latter’s imprecations have to be coerced and that involves either bribes or threats of punishment. Leaving people to deal with the vagaries and injuries of nature by themselves is a form of threat. It sends the message that if people don’t obey, their lives can be even worse.
      Then too, with the exception of the hardware, pharmaceutical and transport component, medical care is a service industry and has been historically considered less economically important. It’s hard to overcome some of these prejudices. But, when you come to think of it, while goods eventually arrive at market saturation, unless the goods are shoddy and have to be replaced, the market for services, especially high quality services is virtually infinite. So, what economists preach is really contrary to fact.

    • http://likethedew.com Lee Leslie

      I keep thinking how different things would be in the South if the governors would just embrace this as industrial development -- imagine for a moment the headline if Mississippi announced that the state’s GDP would be increased by 2% -- $9.9 billion or more over the next 5 years at a cost to the state of about $429 million (per Kaiser Commission). It would easily be the largest job announcement in the state’s history -- while providing access to quality health care to its citizens.
      Or Georgia could announce a $14.5 billion dollar investment into the state at a cost of $714 million. Or Florida could announce a $14.6 billion dollar investment into the state at a cost of $1.2 billion. Or Alabama could announce a $10.3 billion dollar investment into the state at a cost of $470 million. Or Arkansas could announce a $9.4 billion dollar investment into the state at a cost of $455 million. Etc.
      Not expanding coverage is not only bad for the people, it is bad business. Any state would be nuts to walk away from it. It must just be political blather that once the elections are behind us, they’ll see the light.

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