Expanding Medicaid Would Bring Millions to WNC

by Peggy Weil

A new study released in January 2015 highlights the economic and employment costs of not expanding Medicaid in counties across North Carolina.

It shows the far-reaching effects of this decision on local economies in loss of jobs, business activity, and tax revenue. Cone Health Foundation and the Kate B. Reynolds Charitable Trust sponsored the George Washington University study.

Western North Carolina stands to lose big. From 2016 to 2020, the cumulative business activity lost in Buncombe County totals $745 million. The total lost reaches 54.5 million in Haywood, another 168.1 million in Henderson, 54.1 million in McDowell, and 21.7 million in Mitchell County.

The numbers are similarly staggering with regard to lost opportunities for job creation. If North Carolina continues to decline to expand Medicaid, 43,000 fewer jobs will be created by 2020 statewide. At local levels, Buncombe County will fail to create about 1,500 jobs. Haywood County will have 115 fewer jobs, Henderson County 380, and McDowell County 110.

“Denying Medicaid expansion not only hurts Buncombe County citizens without healthcare coverage, but it hurts our entire community. Refusing to expand Medicaid amounts to turning our back on more jobs, more economic activity, and more tax revenue while giving other states a competitive advantage over our local businesses,” said Buncombe County Commissioner Holly Jones.

North Carolina has lost $2.7 billion in federal funding in 2014 and will lose $3.3 billion in 2015. The General Assembly can still choose to accept the expansion of Medicaid, as have 27 other states so far. The federal government will pay for 100% of the cost of expansion through 2016. State’s share of costs will begin at 5% in 2017 and cap at 10% in 2020.

The economic benefits of Medicaid expansion will substantially outweigh the new costs for North Carolina. According to the report, “The net state savings, including new costs, new revenues and potential offsetting health savings, would equal $198 million in 2016 and about $318 million over the five year period 2016 to 2020.” By choosing to expand Medicaid in 2015, North Carolina would add jobs, boost local economies, and increase valuable tax revenue.