Medicaid expansion is good for Louisiana's economy
Louisiana's taxpayers are saving money by expanding Medicaid. Before expansion, taxpayers paid almost 40 percent of the costs for providing care to the uninsured, adding up to $1 billion a year. With Medicaid expansion, we have been able to reduce spending for uncompensated care and use new federal funds to increase patient access to primary care and clinics - and we'll never have to pay for more than 10 percent of the costs for those who are eligible under expansion. It is a win-win for residents and the state's budget.
Medicaid expansion also grows our local economy. By providing health insurance coverage to more working Louisianans, Medicaid expansion is estimated to provide $1.8 billion in increased economic activity to the state and create 15,600 new jobs - mostly in the private sector. Hospitals will hire more workers and new clinics will be constructed in communities throughout the state. Individuals with private insurance will see their premiums drop as hospitals become more profitable without having to care for uninsured patients in their emergency departments.
All of this economic growth is expected to generate approximately $120 million in new tax revenue per year.
For several years, Louisiana missed out on the financial benefits of Medicaid expansion, but by expanding Medicaid, Louisiana is putting more people to work, saving the state money and raising tax revenues.