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About Louisiana Budget Project
Provides independent, nonpartisan research andanalysis of public policy issues and their impact on low- and moderate-income Louisiana families
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Health reform is needed
• 1 in 4 non-elderly adults in Louisiana is uninsured
• LA has some of the strictest Medicaid eligibility for adults in the nation, income limit around 15 percent FPL —or less than $3,000 a year for a family of 3
• Employer-sponsored insurance coverage has been declining for years
• Only 5 percent of children are uninsured due to success of LaCHIP (we know that Medicaid expansions in LA WORK!)
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Eligibility is generous for children and pregnant women. Could be expanded for adults in 2014
Current Eligibilty (as % of Federal Poverty Level)
2014 Expansion up to 133% FPL
Medicaid expansion eligibility:$14,850 for an individual$25,390 for a family of three
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Key Findings from Our Research
• Of estimated 330,000 uninsured people who would qualify for Medicaid expansion, the majority—200,000—are working
• Major coverage gains in important economic sectors: construction, entertainment/tourism and retail
• Other results: major gains among health care and child care employees
Where Do Uninsured Louisianans Who Could Gain Medicaid Coverage Work?
Restaurants and Food Service 33,900
Construction 24,300
Grocery Stores 8,400
Nursing Homes 6,300
Hotels and Motels 6,100
Landscaping Services 6,000
Professional Building Services 4,450
Elementary and Secondary Schools 4,400
Home Health Care Providers 4,100
Hospitals 4,050
Medicaid Expansion is Critical for Low-Income Working People
Occupations w/ Average Wages That Could Make a Family Eligible for Medicaid Expansion
(Source: Louisiana Workforce Commission)
Occupation Avg. Hourly Wage Annual Full Time Wage
Child Care Worker $9.00 $18,730
Construction Laborer $12.80 $26,600
Hairdresser $12.00 $24,920
Home Health Aide $9.30 $19,380
Hotel Desk Clerk $9.40 $19,530
Landscaper $10.85 $22,570
Maid/Housekeeper $8.80 $18,340
Restaurant Cook $10.60 $22,060
Retail Salesperson $11.10 $23,110
Waiter/Waitress $9.10 $18,990
Medicaid Expansion is Critical for Low-Income Working People
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Expansion = More Health Security
• More than 50,000 uninsured Louisianans who would be expansion eligible were working in the last few years—many are unemployed due to the still weak economy.
2007
2008
2009
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Louisiana's Unemployment Rate
2008 2009 2010 2011630,000
650,000
670,000
690,000
710,000
730,000
750,000
Number of Uninsured Adults
Medicaid expansion will benefit Louisianans in every parish
Shreveport
Lake Charles
Alexandria
Lafayette
Baton Rouge
New Orleans
Monroe
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Medicaid Expansion is a GOOD DEAL!
• Federal government will pay 100% of the cost for the first three years
• State will slowly chip in after that, but never have to pay more than 10% of the cost
• By comparison, today the feds pay for around 65% of Louisiana’s Medicaid program, with the state responsible for 35%
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State cost has been exaggerated
• Jindal administration is often quoted saying expansion will cost $3.7 billion over 10 years
• More credible estimates closer to $1 billion
• True cost is likely lower, as there will be offsetting savings elsewhere due to reform
• In return, Louisiana will receive $15.7 billion in new federal money through 2022
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We are already paying
• Louisiana already spends millions each year on health care services for the uninsured. So do private and non-profit providers
• Families and businesses with private insurance pay higher premiums due to “cost shifting”
• Reform will improve the health care system and result in some savings that can be used to help cover the cost of Medicaid expansion
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What is a Health Insurance Exchange?
• Online marketplace where consumers can comparison shop for insurance
• Tax credits available for families and some small businesses
• Federal government will run Louisiana’s exchange
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More Choice and Affordability
• Exchange could benefit more than 300,000 Louisianans
• Current individual and small group markets are often unaffordable—greater “purchasing power” will bring down high premium costs
• Premium tax credits could total more than $385 million in the first year alone
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Positive Health Impacts
• Louisiana ranks near the bottom in national health rankings
• Medicaid expansion would improve access to care, reduce financial stress on families and result in better overall well-being
• New research shows that Medicaid expansions even reduce state mortality rates
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Positive Economic Impacts
• Medicaid currently supports an estimated 50,000 health-care jobs and thousands more “indirect” jobs across the state
• Influx of new federal health care dollars will stimulate state economy
• Expansion means more competition for health care services
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Direct Benefits for Employers
• Healthier workforce is a more productive workforce
• Access to insurance results in fewer missed days of work and better health management for employees
• Less “job lock” means more efficient labor market and better employees
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We can’t afford to NOT expand Medicaid
The need for Medicaid expansion is clear. Without expansion:
• Poor health outcomes will continue to affect our workforce and diminish productivity
• Financial pressure on the state and health care providers will increase
• Continued “cost shifting” will affect those with private insurance