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Mississippi leaving more than $1 billion per year on table by rejecting Medicaid expansion

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Mississippi leaving more than $1 billion per year on table by rejecting Medicaid expansion

Note: This article is part of Mississippi Today’s ongoing Mississippi Health Care Crisis project.Read more about the project by clicking here.

Mississippi would receive $1.61 billion in federal funds for the first year of Medicaid expansion and $1.64 billion in the second year, according to a study authored by the state economist's office.

The state's top economists forecasted that Mississippi would collect $1.36 billion in year three, $1.38 billion in year four, and increasing by smaller percentages going forward.

The study, released by state economist Corey Miller and senior economist Sondra Collins of the University Research Center in September 2021, assessed the financial effects if state leaders expanded Medicaid in 2022. Choosing to opt into the expanded federal Medicaid program would not only provide more than 200,000 primarily working Mississippians with basic health care coverage, but it would be a boon to the state's economy, the experts found.

Importantly, the economists found that the 10% matching costs the state must cover if it expanded Medicaid would be more than covered by health care-related savings to the state and new tax revenue generated.

Q&A:What is Medicaid expansion, really?

But of course, the expansion the economists forecasted in the 2021 study did not happen. State leaders, primarily Gov. Tate Reeves and House Speaker Philip Gunn, continue to block efforts to expand Medicaid. Thirty-eight other states have expanded Medicaid, and South Dakota is expected to become the 39th after voters there approved a Medicaid expansion measure on the November ballot.

The Mississippi study pointed out that federal COVID-19 relief legislation, the American Rescue Plan, provides states that have not expanded Medicaid a greater financial incentive to do so. The study estimates that the incentive would result in an additional $306.4 million for Mississippi the first year and $316.2 million the second year.

After two years, the incentives go away. In the University Research Center study, those two years of incentives are included for 2022 and 2023. But under the American Rescue Plan, Mississippi would get those incentives the first two years of Medicaid expansion, regardless of the years that expansion occurred.

READ MORE: Who’s opposed to Mississippi Medicaid expansion and why?

Based on the study, which looks an expansion beginning in 2022, the amount of federal funds would decline starting in 2024 because the incentives would go away. But the state would receive similar federal funds on a yearly basis whenever it expands Medicaid. It is just losing out on those funds the longer it waits to adopt the expansion.

The federal Medicaid money coming into the state, whether for the traditional Medicaid program or for expansion, in reality goes to health care providers to pay for services rendered to Medicaid beneficiaries. This would directly help hospitals across the state, which are battling rising health care costs and struggling to cover care for uninsured patients. The federal funds would not stay in state coffers for legislators to dole out in other non-health care areas and it does not go to beneficiaries. But the two years of ARPA-related incentives to expand Medicaid could be used, various studies have pointed out, to mitigate state costs for Medicaid expansion in future years.

The federal government pays 90% of the health care costs for the people receiving benefits through Medicaid expansion. The state is responsible for the additional 10% and for administrative costs.

Those who earn less than 138% of the federal poverty level ($18,754 for an individual) qualify for Medicaid expansion. The state pays a higher matching rate for people on the traditional Medicaid program. Those receiving traditional Medicaid benefits are primarily the disabled, poor pregnant women, poor children and some poor senior citizens.

Even with the state’s mandated match, the University Research Center study concludes that the economic boom caused by Medicaid expansion, based on the billions of dollars in federal funds flowing into Mississippi, will grow the state’s coffers as much as $44 million annually, increase the state’s gross domestic product, modestly grow the state’s population and increase jobs on average of 11,300 per year over a five-year period.

“However, the state would need to increase its current supply of employees in the health care field to realize these job gains,” according to the study.

READ MORE: State economist refutes politicians’ claim that Mississippi cannot afford Medicaid expansion

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Mississippi Today

On this day in 1997

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mississippitoday.org – Jerry Mitchell – 2024-12-22 07:00:00

Dec. 22, 1997

Myrlie Evers and Reena Evers-Everette cheer the jury verdict of Feb. 5, 1994, when Byron De La Beckwith was found guilty of the 1963 murder of Mississippi NAACP leader Medgar Evers. Credit: AP/Rogelio Solis

The Mississippi Supreme Court upheld the conviction of white supremacist Byron De La Beckwith for the 1963 murder of Medgar Evers. 

In the court’s 4–2 decision, Justice Mike Mills praised efforts “to squeeze justice out of the harm caused by a furtive explosion which erupted from dark bushes on a June night in Jackson, Mississippi.” 

He wrote that Beckwith’s constitutional right to a speedy trial had not been denied. His “complicity with the Sovereignty Commission’s involvement in the prior trials contributed to the delay.” 

The decision did more than ensure that Beckwith would stay behind bars. The conviction helped clear the way for other prosecutions of unpunished killings from the Civil Rights Era.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

Medicaid expansion tracker approaches $1 billion loss for Mississippi

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mississippitoday.org – Bobby Harrison – 2024-12-22 06:00:00

About the time people ring in the new year next week, the digital tracker on Mississippi Today’s homepage tabulating the amount of money the state is losing by not expanding Medicaid will hit $1 billion.

The state has lost $1 billion not since the start of the quickly departing 2024 but since the beginning of the state’s fiscal year on July 1.

Some who oppose Medicaid expansion say the digital tracker is flawed.

During an October news conference, when state Auditor Shad White unveiled details of his $2 million study seeking ways to cut state government spending, he said he did not look at Medicaid expansion as a method to save money or grow state revenue.

“I think that (Mississippi Today) calculator is wrong,” White said. “… I don’t think that takes into account how many people are going to be moved off the federal health care exchange where their health care is paid for fully by the federal government and moved onto Medicaid.”

White is not the only Mississippi politician who has expressed concern that if Medicaid expansion were enacted, thousands of people would lose their insurance on the exchange and be forced to enroll in Medicaid for health care coverage.

Mississippi Today’s projections used for the tracker are based on studies conducted by the Institutions of Higher Learning University Research Center. Granted, there are a lot of variables in the study that are inexact. It is impossible to say, for example, how many people will get sick and need health care, thus increasing the cost of Medicaid expansion. But is reasonable that the projections of the University Research Center are in the ballpark of being accurate and close to other studies conducted by health care experts.

White and others are correct that Mississippi Today’s calculator does not take into account money flowing into the state for people covered on the health care exchange. But that money does not go to the state; it goes to insurance companies that, granted, use that money to reimburse Mississippians for providing health care. But at least a portion of the money goes to out-of-state insurance companies as profits.

Both Medicaid expansion and the health care exchange are part of the Affordable Care Act. Under Medicaid expansion people earning up to $20,120 annually can sign up for Medicaid and the federal government will pay the bulk of the cost. Mississippi is one of 10 states that have not opted into Medicaid expansion.

People making more than $14,580 annually can garner private insurance through the health insurance exchanges, and people below certain income levels can receive help from the federal government in paying for that coverage.

During the COVID-19 pandemic, legislation championed and signed into law by President Joe Biden significantly increased the federal subsidies provided to people receiving insurance on the exchange. Those increased subsidies led to many Mississippians — desperate for health care — turning to the exchange for help.

White, state Insurance Commissioner Mike Chaney, Gov. Tate Reeves and others have expressed concern that those people would lose their private health insurance and be forced to sign up for Medicaid if lawmakers vote to expand Medicaid.

They are correct.

But they do not mention that the enhanced benefits authored by the Biden administration are scheduled to expire in December 2025 unless they are reenacted by Congress. The incoming Donald Trump administration has given no indication it will continue the enhanced subsidies.

As a matter of fact, the Trump administration, led by billionaire Elon Musk, is looking for ways to cut federal spending.

Some have speculated that Medicaid expansion also could be on Musk’s chopping block.

That is possible. But remember congressional action is required to continue the enhanced subsidies. On the flip side, congressional action would most likely be required to end or cut Medicaid expansion.

Would the multiple U.S. senators and House members in the red states that have expanded Medicaid vote to end a program that is providing health care to thousands of their constituents?

If Congress does not continue Biden’s enhanced subsidies, the rates for Mississippians on the exchange will increase on average about $500 per year, according to a study by KFF, a national health advocacy nonprofit. If that occurs, it is likely that many of the 280,000 Mississippians on the exchange will drop their coverage.

The result will be that Mississippi’s rate of uninsured — already one of the highest in the nation – will rise further, putting additional pressure on hospitals and other providers who will be treating patients who have no ability to pay.

In the meantime, the Mississippi Today counter that tracks the amount of money Mississippi is losing by not expanding Medicaid keeps ticking up.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

On this day in 1911

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mississippitoday.org – Jerry Mitchell – 2024-12-21 07:00:00

Dec. 21, 1911

A colorized photograph of Josh Gibson, who was playing with the Homestead Grays Credit: Wikipedia

Josh Gibson, the Negro League’s “Home Run King,” was born in Buena Vista, Georgia. 

When the family’s farm suffered, they moved to Pittsburgh, and Gibson tried baseball at age 16. He eventually played for a semi-pro team in Pittsburgh and became known for his towering home runs. 

He was watching the Homestead Grays play on July 25, 1930, when the catcher injured his hand. Team members called for Gibson, sitting in the stands, to join them. He was such a talented catcher that base runners were more reluctant to steal. He hit the baseball so hard and so far (580 feet once at Yankee Stadium) that he became the second-highest paid player in the Negro Leagues behind Satchel Paige, with both of them entering the National Baseball Hame of Fame. 

The Hall estimated that Gibson hit nearly 800 homers in his 17-year career and had a lifetime batting average of .359. Gibson was portrayed in the 1996 TV movie, “Soul of the Game,” by Mykelti Williamson. Blair Underwood played Jackie Robinson, Delroy Lindo portrayed Satchel Paige, and Harvey Williams played “Cat” Mays, the father of the legendary Willie Mays. 

Gibson has now been honored with a statue outside the Washington Nationals’ ballpark.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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