Bad business for state to turn down Medicaid money

For some time, we have been bombarded on a seemingly daily basis with statements from various government officials relating to the great “cost” of the Medicaid program, and woeful worrying over the ability of the state to afford maintaining, much less expanding, Medicaid coverage.

In fact, every dollar invested (because it is an investment, rather than an expenditure) in Medicaid by the state of Mississippi returns more than a dollar to the tax coffers of government entities in the state.

A study conducted some years ago, when the federal match rate was about the same as now, determined that money paid out for medical services by Mississippi Medicaid “turned over,” on average, seven times before leaving circulation in the state. Tax dollars were generated virtually every time the money turned over.

Clarion Ledger
8/7/13