1. The Economic Case for Medicaid
Kathleen (Kat) Stoll
WV Together for Medicaid
September 25, 2017

2. WV Medicaid Today 650,000 + enrollees 1/3 of total WV population
76% of WV kids in 2016
60% of births
39,000 seniors
130,000 blind and disabled
75% of nursing home & long-term care
45% of DRT for opioid addiction
“critical tool in addiction crisis fight”
Dr. Richard Frank
Uninsured rate 14% in 2013
has shrunk to 5.3% in 2016

3. Medicaid: Strong Economic Stimulus
Macro- economic benefits – good for the state economy
Micro-economic benefits – financial stability for WV individuals & families

4. Medicaid: Benefits ALL West Virginians
Macro:
Creates economic stimulus & jobs as new federal dollars flow through community
Supports local hospitals and health centers
Saves state dollars in other state programs & services – primary payer for substance abuse treatment
Micro:
Workers in small business have health coverage
Increases WV family’s financial stability

5. Why was astrology invented?
So economics would seem like an accurate science.

6. Medicaid: Good for WV Economy
Medicaid total budget:
$3 billion federal/$1 billion state dollars
$3 billion new fed dollars per year generates significant jobs & business activity
Sense of magnitude:
Medicaid expansion repeal only:
10,600 jobs lost (4,700 in health care) by 2019
$10.19 billion business output lost
$220 million state & local taxes
Commonwealth Fund, 2017 using REMI macro-economic model
See:

7. Medicaid: Lifeline for Rural Providers
Rural hospitals financial status improved in Medicaid expansion states:
uncompensated care costs fell 43%
Medicaid revenue as a share of total hospital revenue rose 33%
operating margins increased by 4 percentage points (difference between total revenues & operating costs)
See

8. After the ACA, uncompensated care costs in West Virginia’s rural hospitals went down almost across the board. In fact, uncompensated care costs halved from almost $85 million in 2013 to about $43 million in 2015.
“So we saw that those patients that didn’t have insurance, had insurance and so that was a really good thing for us and for a lot of the rural hospitals or any of the hospitals in West Virginia,” said Skip Gjolberg, CEO of St. Joseph’s hospital in Upshur County.
WV Public Broadcasting March 24, 2017

9. Medicaid: Financial Stability for West Virginians
Federal Reserve Bank of Chicago
& Federal Reserve Bank of New York
studies quantify positive impact
Medicaid expansion associated with significant reduction in people’s unpaid bills of all types, amount of debt sent to collection agencies, & credit card debt
10 percentage point increase in Medicaid eligibility reduces personal bankruptcies by 8 percent
Medicaid covered families 40% less likely to borrow money or skip paying bills to cover medical expenses
See:

10. katdstoll@gmail.com 304-258-3118 Kat Consulting
Kathleen (Kat) Stoll
Kat Consulting