Study: Accepting Federal Medical Assistance $ Will Save PA. $4.4 Billion, & Increase Tax Revenues

[JPZenger]

http://economyleague.org/node/1702

The results of this study by the Pennsylvania Economy League and Econsult are similar to another study by the Rand Corporation.

Excerpts:

"Over the next 10 years (2013-2022), the analysis (conducted in partnership with Econsult Solutions, Inc.) presented in the report shows that Medicaid expansion would produce:

$4.4 billion in state government savings. The state will realize these savings for two main reasons: those currently receiving state-funded medical coverage (whether through General Assistance or more specialized programs that serve highly targeted populations) will move onto Medicaid and the state's burden of uncompensated care will be reduced due to expanded coverage of the previously uninsured.

$32 billion in new federal spending in the Pennsylvania economy. The new spending comprises: new healthcare spending as a result of insuring the previously uninsured; new household discretionary spending for those shifting from private or other government-funded insurance to Medicaid; and new state spending resulting from program savings for reduced or eliminated state-funded insurance programs and uncompensated care payments.

New economic activity that supports between 35,000 and 40,000 jobs and $3.6 billion in new tax revenues. The expansion will support thousands of jobs: 35,000 in 2016 to more than 40,000 in 2022 (at an average wage of $52,461 in 2016). These new tax revenues will be generated through expanded state income taxes, excise taxes, sales taxes, and taxes that increase because the overall level of economic activity in Pennsylvania will increase by $3 billion in 2016 and will rise to $4.4 billion in 2022."

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PA. Senate Democrats projected that huge sums could be saved in the new fiscal year's budget if the State accepts federal Obamacare funds. This is because over $100 million of current state expenditures could be shifted to being paid by the federal government. That would free up money to help reduce the crisis in funding of urban schools in PA.

[PA Democrat]

1. Yes, but it may shrink contributions to Republican campaigns.

THAT is the only thing that Corbett and his buddies care about.

[blue neen]

2. If it's good for Pennsylvania, Tom Terrific and the Republican Legislators won't want it.

This would require common sense, something they are seriously lacking.