Another report has calculated the potential financial cost of Texas foregoing Medicaid expansion.
According to the study, prepared by former Texas deputy comptroller Billy Hamilton, the expansion would create about 231,000 jobs by 2016 and ease the financial burden borne by counties, cities and local hospital districts. The study said Medicaid expansion would cut the state’s uninsured rate by 25 percent and provide insurance for up to 2 million people.
Texas Impact, an Austin-based interfaith organization, and San Antonio-based Methodist Healthcare Ministries commissioned the study.
The study included county-level statistics (see accompanying chart). According to the report, Dallas County would reap $612 million in federal Medicaid funding by 2016 under the report’s “moderate scenario.” Tarrant County would bring in about $430 million, Collin County $132 million and Denton County $113 million under that scenario.
The report also calculated the unreimbursed healthcare delivery by hospital districts and local governments in 2011 and local hospitals in 2010. Those entities combined delivered charity care of about $691 million in Dallas County, $419 million in Tarrant County, about $9 million in Collin County and $419,000 in Denton County.
Local tax revenue generated by Medicaid expansion between 2014 and 2017 by county would be about $228 million in Dallas, $156 million in Tarrant, $85 million in Collin and $58 million in Denton, the report said.
Among the report’s other findings:
- The $1.8 billion in new state revenue generated by the expansion could offset about half of the state match required from 2014 through 2017.
- The economic activity from the infusion of federal funds would boost Texas economic output by $67.9 billion, and add $2.5 billion to local revenues during fiscal 2014-17.
- The new coverage would save the lives of an estimated 5,700 adults and 2,700 children every year.
- Failing to extend Medicaid would not improve the state’s likelihood of getting a block grant and likely would decrease the amount of funding if that funding mechanism was used in the future.
A report by The Perryman Group in October reached similar conclusions. According to the Waco-based think tank, Medicaid expansion would pay for itself by generating $270 billion in economic development over 10 years and create more than 300,000 jobs.
Steve Jacob is editor of D Healthcare Daily and author of the new book Health Care in 2020: Where Uncertain Reform, Bad Habits, Too Few Doctors and Skyrocketing Costs Are Taking Us. He can be reached at [email protected].
