The Alabama Policy Institute released a new report on Medicaid expansion on Tuesday.
In the report, the conservative think tank argues that expanding traditional Medicaid or expanding it through a public-private partnership would lead to long-term costs for the state’s General Fund and lower labor force participation.
“Alabama ranks amongst the bottom of the United States for labor participation, with a rate of 57.5% as of August 2024. Medicaid expansion, whether through the traditional model or a public-private partnership would almost certainly have a negative impact on the state’s labor participation rate, giving some citizens a disincentive to join Alabama’s labor market. The state cannot and should not take any action that further disincentivizes able-bodied workers from entering or remaining in the state’s labor pool,” the report’s author says.
“Medicaid expansion has led to increased costs and diminished labor participation rates in expansion states. While the public-private partnership seems appealing due to its perceived lack of immediate costs, it could potentially lead to long-term price increases and significant impacts on the state General Fund Budget. The same level of consideration should be applied to traditional expansion. Ensuring that all Alabamians have access to high quality health care is important, but yielding to pressure to expand Medicaid could pose significant risks to state budgets and Alabama’s overall economy in the long run," the author adds.
Read the full report from API here.
To connect with the author of this story or to comment, email caleb.taylor@1819News.com.
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