The Affordable Care Act (ACA) aims to increase low-income Americans’ access to health care by granting access to Medicaid. The Medicaid expansion has not been utilized by every state, which has resulted in a significant gap in healthcare coverage between states. The economic justifications for and against Medicaid expansion, as well as how they vary at the state and federal levels, will be covered in this article.
Increasing access to preventative care, lowering the burden of unpaid medical debt, and strengthening the economy are just a few of the economic advantages of expanding Medicaid. Access to preventive treatment has been found to save long-term healthcare expenditures and boost labor productivity, according to Charles E. Phelps (2018). By enabling low-income people to get preventative care, Medicaid expansion will improve health outcomes and lessen the need for expensive emergency room visits.
The economy can benefit from Medicaid expansion as well. The Kaiser Family Foundation claims that expanding Medicaid may boost the economy and create jobs in the healthcare sector (Lopez et al., 2020). By enabling more people to access healthcare, Medicaid expansion increases the industry’s demand for healthcare services and job prospects. Yet, economic factors are also adverse to Medicaid expansion. The price of extending Medicaid is one defense; states are still liable for some of the expenditures associated with Medicaid expansion, even if the federal government covers most of them (Glied et al., 2020). This phenomenon can significantly burden some ailments, raising questions about the Medicaid expansion’s financial viability. The prospect of higher healthcare usage is another reason against extending Medicaid. According to some detractors, increasing Medicaid would result in a spike in healthcare use, raising expenses and lengthening waiting times for medical services (Glied et al., 2020). The premise of this argument is that greater access to healthcare will result in greater healthcare consumption.
In conclusion, extending Medicaid brings several economic advantages, such as better access to preventative care, a drop in medical debt, and a rise in the nation’s GDP. Although there are legitimate financial arguments against extending Medicaid, the advantages economically exceed the disadvantages, particularly at the federal level. To achieve healthcare equity and enhance low-income people’s health outcomes, Medicaid must be expanded.
References
Glied, S. A., Collins, S. R., & Lin, S. (2020). Did the ACA lower Americans’ financial barriers to health care? Health Affairs, 39(3), 379–386. Web.
Lopez, E., Neuman, T., Jacobson, G., & Levitt, L. (2020). How much more than Medicare do private insurers pay? A review of the literature [PDF Document]. Kaiser Family Foundation, 15. Web.
Phelps, C. E. (2018). Health Economics (6th ed.). Pearson Publishing.