- ± 223,000 Alabamians are caught in the coverage gap, unable to afford health insurance. Another 120,000 or more are stretching to pay for private or employer-based coverage.
- 13 Alabama hospitals – including 7 rural ones – have closed since 2011.
- 88 percent of Alabama’s rural hospitals operate in the red.
- If we expand Medicaid to cover low-income adults, the permanent federal match is 9:1.
- The first four years of federal match would generate $11.4 billion in new economic activity:
— $6.7 billion in direct federal spending
— $4.6 billion in indirect economic activity
- Over four years, the enhanced match would free up $316 million in current state spending to address additional unmet health care needs:
— Existing Medicaid groups – $87.1 million
— Mental health & substance abuse – $121.6 million
— Corrections – $46.8 million
— Public health – $60.6 million
- Expansion-related economic activity would generate $446 million in state tax revenues over four years. New local tax revenues would total $270 million over four years.
- Net cost to the state would be $168 million in the first year, dropping to about $25 million annually in the following years because of savings and revenues, for a total of $239 million over four years. (This figure does not include local revenue gains.)
Medicaid expansion would help more than 340,000 Alabamians get health coverage, stabilize our rural hospitals and jump-start our economy – all for a dime on the dollar. It’s a bargain Alabama can’t afford to pass up.
(Sources: U.S. Census Bureau; Alabama Hospital Association; David J. Becker, “Medicaid Expansion in Alabama: Revisiting the Economic Case for Expansion,” January 2019; Manatt, “Alabama Medicaid Expansion: Summary of Estimated Costs and Savings, SFYs 2020-2023,” February 2019.)