Only One Rational Choice

Texas Should Participate in Medicaid Expansion Under the Affordable Care Act

Published on February 13, 2013
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According to an analysis by The Perryman Group, every $1 spent by the State of Texas to expand Medicaid coverage under the Affordable Care Act (ACA) returns $1.29 in dynamic State government revenue over the first 10 years of the expansion. Medicaid expenditures lead to substantial economic activity, federal funds inflow, reduction in costs for uncompensated care and insurance, and enhanced productivity from a healthier population. When these outcomes and the related multiplier effects are considered, the program actually far more than pays for itself and provides a notable economic stimulus.

Local areas across the state would receive an economic boost if Texas expands Medicaid coverage under the Affordable Care Act (ACA). According to an analysis by The Perryman Group, increased economic activity over the first 10 years would range from just over $1 billion in smaller population centers to more than $64 billion in the largest.

"Every community across the state would share in the benefits of expanding Medicaid coverage," said Dr. Perryman. "While the Medicaid system and ACA are not perfect, they are key aspects of the current health care environment in which Texas must function. From an economic perspective, there is only one rational choice: Texas should participate in Medicaid expansion."

For more details please refer to the full report.