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NCIOM: Medicaid Expansion Saves NC $159 million over next two years; saves $65 million over next 10

Late today the NC Institute of Medicine released its comprehensive report on the Affordable Care Act and North Carolina.  Full report is available here.  A presentation on the costs of NC’s Medicaid expansion is here.  The business consultants’ cost analysis is here.  Key findings are that if NC expands Medicaid under the Affordable Care Act we will:

1.  Create approximately 25,000 new jobs according to an independent consultant’s report.

2.  Increase annual state GDP by $1.3 – $1.7 billion a year.

3.  Increase total state revenues by $497 million by 2021.

4.  Save $159 million over the next two years JUST BY EXPANDING MEDICAID  (and $65 million overall for the next 10 years.)

So why aren’t we doing this again?

4 Comments


  1. david esmay

    January 31, 2013 at 8:59 pm

    Anything that actually creates jobs and makes health care affordable for average citizens in NC will be killed by the GOTP legislature. They have nothing but disdain for working class families.

  2. Gary Greenberg

    February 1, 2013 at 12:47 pm

    Link to IOM report is broken. Its summary does work.
    .
    The summary (page 21) shows easy view, with better data of what happens with MCD expansion:
    – Increased net money to the state budget over 1st 3 years, while covering 500k add’l folks with essential health care.
    – Thereafter, it’ll cost NC just $300/year/person for comprehensive care, currently not (or barely) carried by charities & institutional cost-shifting.
    – Stimulus to NC economy of 25,000 jobs by ’16
    – Opportunity to recuperate $Billions we’ll be paying (anyway!) as Fed. taxes
    – NC’s Medicaid prg is among most efficient & targeted in nation, slowing healthcare inflation in adults & kid-care.

    The only explanation for refusing is ideological. Call it cruel or Rand-ian or racist or simply denying the national picture. Let your legislators know what a bad idea this is.

  3. Adam Searing

    February 1, 2013 at 12:51 pm

    Sorry -the link in the post to the entire IOM report has been fixed. Thanks Gary.

  4. Doug

    February 1, 2013 at 3:59 pm

    Funny that thay don’t keep expanding the net costs to NC out. A jump from $35 – $97 million and remaining level is worrisome. I assume the farther out you go, the more it costs each year. If you just take the typical 3.5% expansion of costs per year you get to $123M…..$127M…..$132M…..$137M…..$141M…now we are talking some real costs now that we are past half at trillion dollars. In the STATE! It also leaves out the inevitable mandate from the Feds that we take on more costs because they dont want to so we are required to take that on too (it has happened before, just do the research).

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