A new report shows expanding Medicaid in Alabama would lead to a boost in the economy. The new data from the nonprofit Community Catalyst shows more residents are at risk of falling into the Medicaid coverage gap. This is due to scaling back policies that were in place during the COVID-19 pandemic.
“Medicaid is going through what's called and unwinding,” said Jennifer Harris, a health policy advocate for Alabama Arise. “They're doing redeterminations to see who is eligible for Medicaid coverage and which particular program that they are eligible for. Prior to this, there was what was called continuous eligibility enrollment. Which during the pandemic, it was declared a public health emergency.”
Alabama is one of ten states that has not expanded Medicaid. According to the study, the refusal to expand Medicaid has left about 300,000 Alabamians in the Medicaid coverage gap.
Those in the coverage gap make too much to qualify for Medicaid but not enough to afford private healthcare insurance. The people most affected by the lack of coverage are people of color due to racism and oppression.
The study also shows that nearly half of Alabamians in the workforce are not receiving health insurance from their employees.
Debbie Smith, Alabama Arise’s Cover Alabama campaign director, said employers might be providing health insurance; however, it might be too expensive for their employees.
“Folks that work at fast food restaurants, for instance, they may have an offer to purchase health insurance coverage from their employer. But if that is $700 a month or more to purchase, and you're only making $11 an hour, then obviously that's going to be out of reach for you,” she explained. “But if we were to expand Medicaid and close the coverage gap in Alabama, then those folks might actually have access to Medicaid coverage and health coverage.”
According to Community Catalyst, closing the Medicaid coverage gap would create an average of 20,000 new jobs per year and have an estimated positive economic impact of $11.36B over the next six years.
“The 300,000 people who are in the coverage gap,” said Smith, “the biggest thing to me is that those people get access to the healthcare coverage that they need. But it would also boost our workforce participation.”
According to a report, Alabama has not accepted federal funding to expand Medicaid under the Affordable Care Act, despite Democratic lawmakers’ repeated attempts to do so. The Alabama Hospital Association also supports expansion and has stated that dozens of hospitals in Alabama have closed in recent years or are in danger of closing due to lack of funds.
“I know that's been a hot topic among legislators and Governor Ivey, and they've been really concerned about workforce participation,” said Smith. “We have a very low unemployment rate. But at the same time, there's a lot of people who are sitting on the sidelines who might otherwise be working if they had access to health coverage.”
However, there are resources available to help Alabamians during this time. Alabama Arise has a Medicaid toolkit to assist policyholders. Jennifer Harris from Alabama Arise said the toolkit has a variety of up to date information.
“We have resources as far as articles and source materials and flyers and things that can be shared. Just what is the most common information, and what is the most recent and up to date information that we have that's going on with the Medicaid online thing. As things change, as things are updated, we want to share and get that information,” she said.
The toolkit is also useful to organizations that help those who are recipients of Medicaid.
“We're also keeping in mind all those people who are out there helping organizations, who are out there doing community engagement,” Harris said.
Debbie Smith said that most Alabamians are in favor of expanding Medicaid and closing the Medicaid coverage gap.
“I would just say that, about 70% of Alabamians support Medicaid expansion and closing the coverage gap. We need folks out there talking to their legislators, calling Governor Ivey and telling them that this is something that they want,” she said.
To read more on the Community Catalyst study, visit the report here.
