Research Highlights Life-Saving Impact of Medicaid Expansion
A study from the National Bureau of Economic Research indicates that expansion of Medicaid has been responsible for saving more than 27,000 lives since its implementation in 2010.
Recent developments have intensified scrutiny on proposals from the Trump administration and House Republicans to severely reduce Medicaid funding. A new study supports claims that such cuts would likely lead to increased mortality rates among the nation’s poorest.
While congressional Republicans moved forward with a bill that could strip Medicaid coverage from approximately 8 million Americans to facilitate tax and budget adjustments favored by President Donald Trump, a working paper released by the National Bureau of Economic Research and highlighted by The New York Times points to significant life-saving benefits from the Medicaid expansion initiated in 2010.
The expansion, a key component of the 2010 Affordable Care Act, which fully came into effect in 2014, enabled all low-income adults to qualify for Medicaid regardless of their disability status or whether they have children. This policy adjustment has led to a nearly 50% increase in Medicaid enrollment from 2010 to 2021, the study authors noted.
According to the research, which analyzed data pertaining to 37 million low-income adults in the U.S., Medicaid expansion led to a 12 percentage point increase in enrollment. The findings suggest that enrollment in Medicaid reduces the risk of death by 21% compared to those without coverage.
The research posits that the financial cost of these life-saving expansions is approximately $5.4 million per life saved and $179,000 per life-year saved, figures that the researchers consider economically viable.
The timing of the study’s publication coincides with ongoing legislative debates over Medicaid, making the findings particularly pertinent, researchers explained to The New York Times. The paper has been described as the most conclusive yet regarding the health benefits of Medicaid, with several health economists who were not involved in the study endorsing its conclusions as strong evidence that health insurance, including Medicaid, is crucial for saving lives.
Meanwhile, legislative efforts to pass a substantial GOP bill were temporarily thwarted when a few Republican members of the U.S. House Budget Committee, often referred to as “fiscal hawks,” joined Democrats in opposing the bill during a crucial committee vote. Their opposition was due to a desire for even greater reductions in Medicaid spending.
Following the committee vote, Representative Pramila Jayapal (D-Wash.), a member of the panel, promised that Democrats would continue to defend Medicaid and the welfare of Americans.
In reaction to the vote, Alex Lawson, executive director of Social Security Works, warned that despite the temporary setback, Republicans were likely to bring the bill to the House floor the following week. He criticized the proposed cuts sharply, suggesting they would endanger lives and adversely affect nearly every American who is not extremely wealthy.
Lawson emphasized, “The ripple effect of these cuts will affect every single person in this country. Unless you are a billionaire, your standard of living and your healthcare will deteriorate if this reprehensible plan is enacted.”
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An economic reporter, Dax Everly breaks down financial trends and their impact on Americans’ daily lives.