The Business Case for Protecting Medicaid Access
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Investing in Medicaid not only enhances health outcomes for vulnerable populations but also yields significant government savings. Here are three areas where Medicaid yields financial benefits:

Prevents Costly Emergency Care and Hospitalizations

  • Reduces Uncompensated Care Costs: Ensuring Medicaid access helps prevent avoidable emergency room visits and hospital admissions, saving hospitals and taxpayers billions in uncompensated care.
  • Supports Preventive & Primary Care: Investments in Medicaid-funded care coordination reduce chronic disease complications and improve long-term health outcomes.

DATA HIGHLIGHT

States that expanded Medicaid under the Affordable Care Act have collectively achieved a reduction of more than $7 billion in uncompensated care costs.

Strengthens Workforce and Economic Stability

  • Keeps Low-Income Workers Healthy & Employed: Medicaid coverage ensures that essential workers, including caregivers, service industry employees, and retail workers, remain healthy and productive.
  • Supports Healthcare Jobs & Local Economies: Medicaid funding sustains healthcare providers, rural hospitals, and community health centers, which are economic engines in many underserved areas.

DATA HIGHLIGHT

Children who receive Medicaid benefits are less likely to suffer from chronic diseases and hospitalizations later in life, leading to better school performance, economic mobility, and reduced reliance on social safety net programs, thereby decreasing long-term government expenditures.

Reduces Health Disparities and Improves Equity

  • Ensures Access for Marginalized Populations: Medicaid is a lifeline for pregnant women, children, individuals with disabilities, and communities of color who face significant health disparities.
  • Medicaid represents nearly $1 out of every $5 spent on healthcare in the U.S. and is the major source of financing for states to provide health coverage and long-term care for low-income residents.

DATA HIGHLIGHT

Studies indicate that every dollar invested in community health worker interventions can yield $2.47 in returns to an average Medicaid payer within the fiscal year, underscoring the program’s cost-effectiveness in addressing social determinants of health.