Overall objective -- to estimate the economic impact of the Medicaid program on Alaska’s economy. More specifically, the report will: 1.provide a brief summary of Alaska’s Medicaid spending; 2.provide a brief overview of the Medicaid program; 3.estimate the economic impact of the state and contract employees that work for Alaska’s Medicaid program; 4.estimate the economic impact of the health care services provided by Medicaid to the citizens of Alaska; and 5.summarize the total economic impact that the Medicaid program has on Alaska’s economy. Economic Impact of the Medicaid Program on Alaska’s Economy

Economic Impact of the Medicaid Program on Alaska’s Economy Medicaid Expenditures 1Each dollar spent is 26 cents State and 74 cents Federal. 2Each dollar the State spends attracts $2.83 Federal dollars. Total Federal and State Expenditures = $574.5 M Total State General Funds = $150.1 M Medicaid Dollar 26 cents State 74 cents Federal One State Dollar 2.83 Federal Dollars Total Business Spending generated throughout Alaska’s Economy from Medicaid Program $1.011 Billion

Jobs 9,002 Income $346.2 M DIRECT IMPACT on Jobs and Income Division and Contract Employees Jobs 191 Income $9.9 M Expenditures for Health Care Services Jobs 5,158 Income $219.8 M INDUCED & INDIRECT IMPACT on the Alaska Economy due to employee and business spending Division & Contract Employee Spending Jobs 94 Income $2.2 M Health Care Providers Spending Jobs 3,559 Income $114.3 M TOTAL IMPACT ON JOBS AND INCOME of the Medicaid Program on Alaska’s Economy

Economic Impact of the Medicaid Program on Alaska’s Economy In summary, Alaska’s investment of $150 million in State General Fund expenditures in FY 2001 for the Medicaid program created over 9,000 jobs and generated more than $346 million income in Alaska.