New York Estate Planning & Elder Law Blog
The states currently resisting Medicare are currently falling behind in job-market strength as well as the growth of income. Meanwhile, even the states that later signed up for Obamacare are witnessing more prosperous economies.
Obamacare created a substantial debate in the country before it was passed into law. One question raised by critics of Obama care is the measure’s impact on the economy. Supporters argued that Obama would help companies flourish because they would realize many of the costs associated with healthcare, while critics warned that Obamacare would result in tax increases.
Data after Obama’s decade-long existence now reveals that states that have fully embraced the measure are enjoying stronger economies than states that assumed these measures.
States that Treat Medicaid Expansion As Optional
A consideration of the 12 states that have declined to accept a fundamental aspect of Obama reveals that federal funds designed to pay for the expansion of Medicare reveal some perhaps surprising news. These 12 states are allowed to exist in such a way as the result of a United States Supreme decision that made Medicaid expansion optional.
38 states accept federal financing of health insurance for the poor, which marks an increase from the original 25 states that supported Obamacare.
The Role of Medicaid Expansion
The Medicaid expansion allows over 4 million of the most at-risk individuals to work and drives growth. This explains why 38 states have supported Medicaid, which marks an increase from the 24 states that supported Medicaid in 2014.
The Value of the Affordable Care Act
The Affordable Care Act was signed over a decade ago by President Obama who wanted to let the entire country’s population profit from private or public health care that would ultimately reduce the country’s burden and stimulate the economy. Obamacare powerfully lets children stay insured on parent’s insurance policies until the age of 26 as well as required equal treatment of individuals with preexisting medical conditions and prohibited coverage limits.
Before the COVID-19 pandemic concluded the country’s longest period of growth, the economy in states that first declined and later implemented Medicaid expansion outperformed it. Labor participation measures the number of individuals in the working-age population with employees who are pursuing work. The trend continues because the pandemic had a substantial impact on mothers lacking child care.
From the beginning of the Covid-19 pandemic in 2020 to the current date, when the country began to recover from the worst economic fallout since the Great Depression, the number of jobs in the country grew by almost 15%.
Texas has the greatest number of individuals without insurance and perhaps expectedly underperformed the national average of employment growth. Meanwhile, Massachusetts, which accepted Obamacare, witnessed its workforce increase by 18.3%.
Unemployment trends reveal a similar pattern. The 12 states that have held out from Obamacare are currently witnessing their jobless rates drop an average of 8.95 percentage points since 2020.