Mississippi State Economist Corey Miller says the cost of expanding Medicaid for five years beginning in 2022, could be as much as $207 million annually. But he found the stimulus money from the American Rescue Plan would cover the cost, saving the state up to $227 million. Miller says hospitals wouldn’t lose as much money providing uncompensated care.
“The biggest portion of the savings appears to be on, this is 75 percent or so would come from the reductions in uncompensated care costs. I think that’s the most critical variable to look at in terms how much it will save or cost the state,” said Miller.
The federal government pays 90 percent of the costs of expansion; the state pays 10. The stimulus plan increases Medicaid payments to the state for two years. Miller found the savings covers the cost of the program for up to 10. Democratic Representative Gregory Holloway of Hazlehurst supports expanding Medicaid.
“I think it's worth doing. I think it’s worth creating jobs. I think it’s worth stimulating the economy and I think it’s worth taking a chance to make Mississippi as healthy as it can be,” said Holloway.
Miller notes over 11,000 healthcare related jobs would be created, increasing the population along with income tax revenues by 44 million per year. Republican Senator Chris McDaniel of Ellisville doesn’t think the government can sustain the 90-10 match.
“The underlying assumptions of the report depends on some respects on one time monies. Secondly it depends on another respect with massive federal expenditures in the Medicaid program. Those expenditures are not guaranteed,” said McDaniel.
The report says up to 233,000 individuals who are 138 percent below the federal poverty level would be covered by Medicaid expansion. For a household of three that would be just over $30,000 per year.
The governor has repeatedly said the state cannot afford to expand Medicaid.
