Impact of Medicaid on jobs


Don Taylor's RECKONING BLOG

A paper in the August 2012 issue of the American Economic Journal: Economic Policy finds:

In our preferred specification, a state’s receipt of a marginal $100,000 in Medicaid outlays results in an additional 3.8 job-years, 3.2 of which are outside the government, health, and education sectors.

In short, expanding Medicaid not only provides health insurance, but has a positive impact on jobs/employment in a state that undertakes such as expansion, even beyond the health care sector. This provides more information on the stakes facing North Carolina regarding whether to go ahead with the Medicaid expansion as provided for in the ACA, or to forego this expansion. This choice became an option because of the Supreme Court’s ruling in June that the ACA was constitutionally allowable, but that the penalties that forced states to undertake a Medicaid expansion were not; hence, states can choose to expand Medicaid or not. A…

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