Introduction

The Center for Mississippi Health Policy (Center) is a non-partisan, nonprofit research group with the purpose of providing research and data to inform the planning, decision-making, and operations of health policy in Mississippi. Since the option for states to expand Medicaid eligibility presented itself in 2014, a major question for Mississippi state legislators and health professionals has been the total cost of expansion to the state. While the state faces many obstacles in producing better health outcomes and a
healthier population through improved population health literacy, provider availability, healthier cultures, etc., the purpose of this publication is to address Medicaid expansion’s financial and economic impacts to the state.

The Center commissioned The Hilltop Institute at the University of Maryland, Baltimore County (UMBC), an independent, nonpartisan research group, to conduct a study limited to estimating and projecting the financial and economic effects of Mississippi expanding its Medicaid program by 2023 to provide health insurance to individuals with incomes up to 138% of the FPL. Click here, to view the issue brief discussing those findings.

Key Points

• The first two years of adopting the option would pay for itself.
• A majority of state cost would be offset by increased federal match and tax revenue.
• Enhanced federal match resulting from expansion could result in additional federal funding of $338 million in 2023 and $339 million in 2024.
• Expansion could increase Mississippi’s economy $800 million to $900 million per year
• Expansion could result in $164 million to $191 million reduction in uncompensated hospital care.

Conclusion

This study estimated the likely effects of Medicaid expansion on Mississippi’s Medicaid program, state budget, economic growth, and providers. The available evidence suggests that Medicaid expansion in Mississippi could result in substantial state budgetary savings in 2023 and 2024, with significant additional benefit to the state’s hospitals and economy. Moreover, given the relatively low annual net cost of expansion thereafter, Mississippi could potentially use its ARP Act enhanced federal match to fully offset its net costs of expansion for the foreseeable future.

For More Information

Click the following links to download The Hilltop Institute’s original summary report, technical report, or literature review.

Printed copies of the brief and report can be obtained by contacting the Center for Mississippi Health Policy at 601-709-2133 or by e-mail at info@mshealthpolicy.com.