Study: Medicaid Expansion Helped Colorado Economy

According to a recent report  from the Colorado Health Foundation, the expansion of Colorado's Medicaid program has resulted in the creation of tens of thousands of new jobs and billions of dollars in economic activity over the last two years. The results of the study show that Colorado could be leading the way in a national movement toward creative solutions for complicated state-debt issues.

"The impact of Medicaid expansion in the state is broad-reaching and demonstrates how health is more than just what happens at the doctor's office," Foundation President Karen McNeil-Miller said in a statement. "In addition to providing health insurance to nearly 400,000 Coloradans, expanding Medicaid has proven to be a fiscally sound decision."

Background
In 2013, the Colorado state legislature approved an expansion of Medicaid under the provisions set forth by the Affordable Care Act. Governor John Hickenlooper signed the bill into law. This made Colorado one of a group now comprising 32 states that have expanded Medicaid coverage under the optional ACA provision.

In practical terms, the expansion gave low-income residents the option to enroll in Medicaid, which was formerly only available to those meeting certain age requirements and other limitations. As it stands now, Colorado residents who are living at or below 138 percent of the federal poverty level may enroll in the state's Medicaid plan. According to the According to the CHF, that resulted in nearly 400,000 additional Colorado residents becoming eligible to receive health coverage under Medicaid. Despite a total cost of around $1.75 billion in the 2017-2018 fiscal year, the Medicaid expansion will be completed at no additional cost to the state budget.

Long-term results
In addition, the CHF projected that increased health care spending resulting from the measure meant an additional $3.82 billion was added to the state's economy in just two years. It's estimated that another $8.53 billion in additional gross domestic product will be generated by 2035 as a result of the Medicaid expansion. In terms of employment numbers, the expansion caused 31,074 new jobs to be added in the state. By 2035, that number will total over 43,000, a 1.35 percent increase from previous projections. Average household earnings are also $643 higher after the ruling took effect in 2013. In terms of employment numbers, the expansion caused over 31,000 new jobs to be added in the state. By 2035, that number will total over 43,000, a 1.35 percent increase from previous projections. Average household earnings are also $643 higher after the ruling took effect in 2013.

While members of CHF defended the plan as a long-term savings measure, some government officials were not persuaded by the study's findings, according to The Denver Post. Senate Health and Human Services Committee Chair Kevin Lundberg expressed discontent with the plan , saying that more Medicaid coverage would indeed cost the state vital tax revenue. However, according to the study's authors, the measure actually proved to have more positive results than initially anticipated. The CHF also explained that the savings incurred by the expansion of insurance stem from "improving value for every dollar spent on health care." It's hoped that with greater access to health and wellness programs, more Colorado residents will be able to lead productive, healthy lives.

However, according to the study's authors, the measure actually proved to have more positive results than initially anticipated. The CHF also explained that the savings incurred by the expansion of insurance stem from "improving value for every dollar spent on health care." It's hoped that with greater access to health and wellness programs, more Colorado residents will be able to lead productive, healthy lives.

For more news about the latest in Colorado's economy, visit Vectra Bank.