INARF has learned that a new report has found that an expansion of Indiana's Medicaid program under the Affordable Care Act (ACA) would generate up to $3.4 billion in new economic activity in the state. According to the report by the University of Nebraska Medical Center's Center for Health Policy, these funds could result in at least $108 million in additional state and local tax revenue each year and would support more than 30,000 jobs through 2020.
The study, commissioned by Indiana Hospital Association, estimates that extending coverage for uninsured residents would bring Indiana more than $10 billion in funding from the federal government through 2020. According to the report, if Indiana chooses to opt into the expansion, more than 406,000 Hoosiers would receive health coverage.
The report also indicates that by significantly decreasing the number of uninsured Hoosiers, individuals with private insurance would save $236 and families would save $677 in annual premiums beginning in 2014.
"Expanding coverage in Indiana would benefit all Hoosiers," said Doug Leonard, president of IHA. "This report demonstrates the positive impact that extending coverage would bring to our state's economy and the overall health of our communities."
Coverage expansion bridges the gap for adults in poverty. If Indiana chooses not to expand, thousands of Hoosiers will go uninsured-unable to enroll in Medicaid and barred from getting tax credits to buy coverage in a health insurance exchange.
Indiana hospitals provided nearly $3 billion in uncompensated care in 2011. By not expanding coverage, hospitals may be forced to cut services due to the burden of treating patients who have no coverage.