• October 15, 2021

Mississippi Can Afford Medicaid Expansion, Says State Economist

Mississippi Can Afford Medicaid Expansion, Says State Economist

Mississippi Can Afford Medicaid Expansion, Says State Economist 1024 683 Ayana Kinnel

Last week, Mississippi’s State Economist released a report describing a fiscal and economic analysis of Medicaid expansion in Mississippi. Opposition to Medicaid expansion in the state has long rested on the question as to whether Mississippi can afford the costs of expanding Medicaid to hundreds of thousands of Mississippians who currently fall in the coverage gap-meaning they do not meet income requirements for the Affordable Care Act’s marketplace assistance but still do not earn enough to afford private coverage or do not receive coverage from an employer.  According to State Economist, Corey Miller, Mississippi can afford the expansion.

In the report, Miller states “Based on the assumptions we make about both the costs and the savings of Medicaid expansion to the state, we conclude that from 2024 to 2027 the costs and savings roughly offset one another.” Key findings from the report are as follows:

  • Total estimated expansion population between 2022 and 2027: 228,000 to 233,000 Mississippians.
  • Total estimated annual costs of Medicaid expansion in the state from 2022-2027: between $186 million to $207 million.
  • Total estimated savings of Medicaid expansion to the state in 2022: $512 million; in 2023: $527 million; in 2024: $215 million; in 2025: $219 million; in 2026: $223 million; and in 2027: $227 million.

Mississippi is currently one of twelve states that has not provided a pathway to affordable coverage for uninsured adults with low incomes. Over the years, both federal and local advocates have increased support for expansion. For example, in 2010, the Affordable Care Act provided for Medicaid expansion, but the Supreme Court made expansion optional for states. Recently, federal pandemic relief and recovery aid packages, including the American Rescue Plan Act, provided financial incentives for non-expansion states to begin expansion. Even more, the federally proposed Build Back Better Act that Congress is currently considering includes a plan to permanently expand Medicaid eligibility to states that have not yet expanded.

In Mississippi, a  Medicaid expansion ballot initiative was suspended after the Mississippi Supreme Court essentially nullified the state’s ballot initiative process in May. The Mississippi Legislature can still take up this issue during a special legislative session to address the ballot initiative process or through legislative action during the 2022 Legislative Session. To note, Governor Tate Reeves and House Speaker Phillip Gunn are opposed to Medicaid Expansion. Lieutenant Governor Delbert Hosemann supports “affordable, accessible healthcare.”

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