The latest issue brief from the Assistant Secretary for Planning and Evaluation (ASPE) outlines Medicaid’s positive effects on low-income children and non-elderly adults while emphasizing how expanded eligibility benefits the country’s health and economy.
Medicaid, established in 1965, is the largest health insurer in the U.S., covering 76 million people. It provides coverage for 80% of children and 50% of adults living in poverty, with higher enrollment rates among minorities; 31% of Latinos, 34% of African Americans, and 38% of American Indian and Alaska Natives in 2022.
Research has evaluated Medicaid’s impact on health and economic outcomes. Medicaid coverage for children has been found to improve health during childhood and adulthood. This was measured by a composite index with information on high blood pressure, diabetes, heart disease, and obesity.
Medicaid expansions for pregnant women and children in the 1980s and 1990s resulted in better prenatal care, lower infant mortality, and increased preventive care, such as vaccinations and well-child visits.
Medicaid has also positively impacted members’ educational and economic outcomes. These children tend to have higher test scores, increased high school and college completion rates, and better labor market success, including higher employment, earnings, and lower disability and incarceration rates.
The Affordable Care Act (ACA) Medicaid expansion led to even greater healthcare access, improved health outcomes including early-stage cancer detection and a 9% reduced mortality rate over four years.
In states that adopted Medicaid expansion, members have experienced reduced medical debt, improved credit scores, and lowered bankruptcy rates. Hospitals also reported reduced uncompensated care costs and fewer closures, especially in rural areas.
The Biden-Harris administration has prioritized Medicaid by reviewing policies that may create barriers to healthcare access and encouraging states to expand Medicaid under the ACA. The administration’s new policies ensure continuity of coverage, benefiting more than 17 million children, and it also allows states like Arizona to extend Medicaid postpartum benefits to 12 months under section 1115 demonstration waivers. These demonstrations also support vulnerable populations, including providing healthcare services to incarcerated individuals before release.
Other administrative actions include the American Rescue Plan of 2021 (ARP) which increased federal funding for home and community-based services and offered incentives for states to expand Medicaid. As a result, states like Oklahoma and Missouri adopted the expansion, lowering the uninsured rate by millions of lives.
During the COVID-19 pandemic, Medicaid’s continuous eligibility condition was implemented, helping maintain the uninsured rate at a historic low of 7.7% by the end of 2023.
As of September 2023, 22.5 million people were enrolled in Medicaid expansion.
The Assistant Secretary for Planning and Evaluation issue brief excluded data from those involved in long-term services such as the elderly and disabled individuals.
Currently, The Arizona Health Care Cost Containment System (AHCCCS) is serving 2.2 million Arizonans. Interested in learning more about plan enrollments, newly released capitation rates, financial highlights of local MCOs, and more? Read The Hertel Report’s 2024 AHCCCS data edition for more insight.
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