Economics 4.05

Medicaid is one of the largest payers in health care in the United States of America. Founded in 1965 alongside Medicare, it can be found in every state, in the District of Columbia, and in every US territory. Medicaid is designed to provide health coverage for people with low-income. In 2015 the Affordable Care Act which adds to Medicaid brings the eligibility of people under the age of 65 to be supported by Medicaid. People who have incomes under 133 percent under the Federal Poverty Limit are also eligible.

In total Medicaid, specifically the Affordable Care Act, has cost taxpayers 200,000 dollars if single, 250,000 dollars if married and paying jointly, and 125,000 dollars for married couples who pay separately in 2013 alone. In 2016 however, it cost 110 billion dollars overall. 25 percent of the 2015 budget went to Medicaid, CHIP, and Medicare which was up to 938 billion dollars. Two-thirds of that 25 percent budget went specifically to Medicare, meaning 546 billion dollars. This makes Medicaid along with CHIP, Medicare, and ACA take up most of the US budget!

Expanding Medicaid has had a good impact on the economy, with more people getting insurance every single year. Rhode Island used to have 13.3 percent of its population uninsured prior to the Affordable Care Act. Around mid-2014 though only 9.3 percent was uninsured. This increased the employment rate and encouraged economic growth due to people being assisted by Medicaid. People and families who have been suffering from low-incomes have the ability to now get a good job and even keeping them out from poverty.

Now many people agree that Medicaid along with other health insurance programs have helped with keeping people out of poverty and keeping them healthy as well. However there are some that think otherwise, thinking that they are paying so much money for nothing after seeing that it has no affect on their lives. Many people also agree that it may hurt the economy in all the states and territories and make state budgets more stressful.

If the government were to cut the spending on many of it's programs, a lot of people who were insured by Medicaid and other health programs will suffer greatly. More families will go into poverty and people will potentially lose their jobs if the payment program is supported.

Sources

• "Program History." Medicaid.gov. N.p., n.d. Web. 03 July 2017. .
• Cussen, Mark P. "How Much Medicaid and Medicare Cost Americans." Investopedia. N.p., 20 Aug. 2015. Web. 03 July 2017. .
• Close, Kerry. "This Is How Much Obamacare Will Cost Taxpayers in 2016 | Money." Time. Time, 24 Mar. 2016. Web. 03 July 2017. .
• "Policy Basics: Where Do Our Federal Tax Dollars Go?" Center on Budget and Policy Priorities. N.p., 04 Mar. 2016. Web. 03 July 2017. .
• Malloy, Liam C., and Shanna Pearson-Merkowitz. "The Economic Impact Of Expanding Medicaid – Footnote." Footnote. N.p., 10 Mar. 2015. Web. 03 July 2017. .