PA. is losing out on 35,000 health care jobs by refusing Federal $ for Medical Assistance expansion [View all]

[JPZenger]

http://www.rand.org/content/dam/rand/pubs/research_reports/RR200/RR256/RAND_RR256.pdf

(skip down to the summary on page 13)

A new study by the Rand Corporation looks at the impacts if PA. continues to refuse to accept federal dollars to pay to serve additional persons under the Medical Assistance Program.

The study found that by 2016, PA. would be missing out on $2.5 billion a year in federal funding. These are dollars that PA. residents and businesses are already sending to Washington, but that would not be returned to PA.

The study found that 35,000 health care jobs in PA. would result from accepting the federal money.

Because of economic multipliers, the $2.5 billion in additional federal money would also result in other economic activity, such as from new workers renting apartments, buying homes, shopping, buying cars, etc.

Although PA. would be expected to absorb a portion of the costs in future years, the study found that many of these costs would be offset by $241 million a year in additional state tax revenue that would result.

350,000 more Pennsylvanians would have health insurance if the federal money is accepted.

Although not addressed in the summary, another important issue is that many inner city hospitals would be more stable financially if their amount of uncompensated and charity care would be reduced by having more persons being insured. The current system encourages new modern hospitals and medical centers to be placed in affluent suburban areas where most of the nearby residents have health care. Meanwhile, the inner-city hospitals have trouble paying for needed upgrades and are not seeing the same level of investment.