In 2014, Arkansas accepted federal funds to provide health insurance to more low-income residents through the private option. The private option gives Arkansas residents with incomes below 138 percent of the federal poverty level ($27,720 for a family of three in 2015) the chance to enroll in affordable health insurance. Our analysis finds that 58 percent of those who stand to gain health coverage through the private option are working.
States that expand Medicaid are making high-quality health coverage available to many hard-working people who would not otherwise have insurance. These individuals don’t qualify for regular Medicaid but cannot afford private health insurance. We looked at data from 11 states that have expanded Medicaid under the Affordable Care Act and found that the majority of residents who can benefit from expanded Medicaid are employed.
After expanding Medicaid, eight states (Arkansas, Colorado, Kentucky, Michigan, New Mexico, Oregon, Washington, and West Virginia) are expected to achieve budgetary savings and revenue gains exceeding $1.8 billion by the end of 2015, according to a report published yesterday. And that’s even though these states are fairly early into their Medicaid expansion.
States that have expanded Medicaid under the Affordable Care Act are seeing major budget savings, according to reports released in the past month. These budget savings coupled with new data linking Medicaid expansion to job growth in the health care sector add to the reasons why the program makes good sense for states.