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2018 Medicaid Expansion Economic Effects Press Release

2018 Medicaid Expansion Economic Effects Press Release

Montana’s Medicaid expansion generates more than 5,000 jobs, $270 million in personal income, and net savings for Montana’s budget

Bozeman and Missoula, Mont. (April 11, 2018) – An independent analysis by the University of Montana’s Bureau of Business and Economic Research released today estimates that Montana’s 2016 Medicaid expansion adds $270 million in personal income and more than $500 million in additional economic output to Montana’s economy each year and generates approximately 5,000 new jobs. The program provides health coverage for approximately 94,000 Montanans. Although Montana pays for a share of this new coverage, the study also found that savings and revenue generated by increased economic activity more than offset the cost to the state.

The Montana Healthcare Foundation and the Headwaters Foundation commissioned the analysis. Other key findings include:

  • Labor force participation among low-income Montanans ages 18 to 64 increased by 6 to 9%; these findings may be due in part to improved health among participants as well as the HELP-Link program created as part of Montana’s Medicaid expansion to help recipients find jobs.
  • The program decreased the amount of hospital “uncompensated care” by 40%.
  • The net fiscal impact on Montana’s budget is positive, even in 2020, when Montana will begin paying the maximum 10% share of the costs.

Montana’s Medicaid expansion appears to be paying for itself and helping people re-enter the workforce. It is hard to imagine a better deal for Montanan’s health.

Dr. Aaron Wernham,
Montana Healthcare Foundation CEO

Medicaid expansion in Montana brings with it significant benefits for our state including more jobs and income for our citizens, not to mention providing health care coverage for nearly 1 in 10 Montanans.Brenda Solorzano,
Headwaters Foundation CEO