Medicaid Expansion is Right Choice for Louisiana

Medicaid Expansion is Right Choice for Louisiana Steve Spires Louisiana Budget Project stevespires@lano.org 225.236.1401 www.labudget.org

About Louisiana Budget Project Provides independent, nonpartisan research and analysis of public policy issues and their impact on low- and moderate-income Louisiana families Visit www.labudget.org

Health reform is needed • 1 in 4 non-elderly adults in Louisiana is uninsured • LA has some of the strictest Medicaid eligibility for adults in the nation, income limit around 15 percent FPL —or less than $3,000 a year for a family of 3 • Employer-sponsored insurance coverage has been declining for years • Only 5 percent of children are uninsured due to success of LaCHIP (we know that Medicaid expansions in LA WORK!)

Medicaid expansion eligibility: $14,850 for an individual $25,390 for a family of three

Key Findings from Our Research • Of estimated 330,000 uninsured peoplewho would qualify for Medicaid expansion, the majority—200,000—are working • Major coverage gains in important economic sectors: construction, entertainment/tourism and retail • Other results: major gains among health care and child care employees

Medicaid Expansion is Critical for Low-Income Working People

Expansion = More Health Security • More than 50,000 uninsured Louisianans who would be expansion eligible were working in the last few years—many are unemployed due to the still weak economy.

Medicaid expansion will benefit Louisianans in every parish Shreveport Monroe Alexandria Baton Rouge Lake Charles New Orleans Lafayette

Medicaid Expansion is a GOOD DEAL! • Federal government will pay 100% of the cost for the first three years • State will slowly chip in after that, but never have to pay more than 10% of the cost • By comparison, today the feds pay for around 65% of Louisiana’s Medicaid program, with the state responsible for 35%

State cost has been exaggerated • Jindal administration is often quoted saying expansion will cost $3.7 billion over 10 years • More credible estimates closer to $1 billion • True cost is likely lower, as there will be offsetting savings elsewhere due to reform • In return, Louisiana will receive $15.7 billion in new federal money through 2022

We are already paying • Louisiana already spends millions each year on health care services for the uninsured. So do private and non-profit providers • Families and businesses with private insurance pay higher premiums due to “cost shifting” • Reform will improve the health care system and result in some savings that can be used to help cover the cost of Medicaid expansion

What is a Health Insurance Exchange? • Online marketplace where consumers can comparison shop for insurance • Tax credits available for families and some small businesses • Federal government will run Louisiana’s exchange

More Choice and Affordability • Exchange could benefit more than 300,000 Louisianans • Current individual and small group markets are often unaffordable—greater “purchasing power” will bring down high premium costs • Premium tax credits could total more than $385 million in the first year alone

Positive Health Impacts • Louisiana ranks near the bottom in national health rankings • Medicaid expansion would improve access to care, reduce financial stress on families and result in better overall well-being • New research shows that Medicaid expansions even reduce state mortality rates

Positive Economic Impacts • Medicaid currently supports an estimated 50,000 health-care jobs and thousands more “indirect” jobs across the state • Influx of new federal health care dollars will stimulate state economy • Expansion means more competition for health care services

Direct Benefits for Employers • Healthier workforce is a more productive workforce • Access to insurance results in fewer missed days of work and better health management for employees • Less “job lock” means more efficient labor market and better employees

We can’t afford to NOT expand Medicaid The need for Medicaid expansion is clear. Without expansion: • Poor health outcomes will continue to affect our workforce and diminish productivity • Financial pressure on the state and health care providers will increase • Continued “cost shifting” will affect those with private insurance

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Medicaid Expansion is Right Choice for Louisiana