RENEWED MEDICAID EXPANSION GROWS MONTANA'S ECONOMY: Could New Requirements Hurt Low-Income Residents?

AuthorSonora, Robert

In 2015; the Montana Legislature passed the HELP Act, which expanded Medicaid for a number of low-income residents in the state. Opponents denounced the plan saying it would be a drain on the state s economy by expanding enrollment, spending, coverage and employment. But a report by the Bureau of Business and Economic Research at the University of Montana in 2018 found it had the opposite effect. Medicaid expansion has had a substantial positive impact on Montana's economy providing nearly $1.4 billion of health care to beneficiaries during its first two and half years.

As the Legislature was set to resume in 2019, those who continued to oppose the entitlement were asked, "How would failing to renew Medicaid expansion impact Montana's economy?" The answer was substantial.

Prior to the debate on HB 658, a bill to extend the Medicaid expansion program, the Bureau of Business and Economic Research updated their study of its economic impact. Sponsored by the Montana Health Care Foundation and Headwaters Foundation, the study found that from 2016 to 2020, the overarching economic impact would be about $1.6 billion in additional personal income and just over $2 billion in gross state product. In 2018, Montana's personal income was about $50 billion and gross state product was $48 billion, so the expansion would contribute about 4 percent and 3.2 percent to the state economy, respectively.

In addition, federal funding would support an additional 6,000 jobs, as well as help increase the overall population. It's important to note that while the expansion is in the health care sector, the ripple effects are felt throughout the economy. For example, while 2,400 of the jobs are specific to the health care industry, an additional 1,000 jobs will be added to the retail sector and 600 to construction. Jobs in a variety of sectors, including food services and high-tech will be added as well.

The impacts will be felt across all regions of the state. A majority of the benefits will accrue in areas with larger population centers, such as Billings, Bozeman, Butte, Great Falls, Helena and Missoula, but rural areas will also see some economic benefits. This is particularly important given the decline in rural health care centers nationwide.

According to the National Rural Health Association, since 2010 almost 100 rural hospitals have closed their doors across the nation. More troubling is the statistic that nationally nearly 700 rural care centers are considered...

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