Policy

Ohio could get $2.8 billion more for Medicaid, says Families USA

Ohio could get an additional $2.8 billion to bolster its Medicaid program as part of the economic recovery package being considered by Congress. That money could generate another $2.5 billion economic impact on the state, according to an advocacy group.

WASHINGTON, D.C. — Ohio could get an additional $2.8 billion to bolster its Medicaid program as part of the economic recovery package being considered by Congress, according to a report issued Wednesday by consumer health care advocate Families USA.

The U.S. House of Representatives said more than a week ago that it wanted to provide $87 billion more in Medicaid funding to states as part of its American Recovery and Investment Act of 2009. Medicaid is the federal program that pays health care costs for qualifying low-income people and families. Each state administers its pot of Medicaid dollars.

The House has proposed increasing the Medicaid costs for which the federal government reimburses states through the end of fiscal 2010, said the House Appropriations Committee in a Jan. 15 summary of its economic stimulus bill. States could get more help, based on their unemployment rates, according the the committee summary.

The additional money could help states in two ways, according to Families USA:

  1. Help states continue to provide health care coverage for people who have no way to pay for it
  2. Help revitalize state economies by preventing the loss of jobs, wages and business activity

Economists at Families USA digested the $87 billion number, trying to figure out the potential boost in Medicaid funding for each state. Ohio’s share likely is nearly $3 billion, according to the organization’s report. Dennis Evans, public information officer for the Ohio Department of Job and Family Services, said the $2.8 billion figure “is about right,” as far as a preliminary, ballpark figures go.

As the additional Medicaid dollars filter through the Ohio economy, they could create $2.5 billion in additional business activity in the state, saving 24,800 jobs and $893.8 million in wages, according to the economists at the advocacy group.

presented by

The House voted, 244-188, on Wednesday evening for President Obama’s package of federal tax cuts and spending worth $819 billion and meant to jump-start the economy out of its worst crisis in decades, according to the New York Times.

Meanwhile, the U.S. Senate moved closer to passing legislation that would expand the State Children’s Health Insurance Program (SCHIP), Congressional Quarterly said. A final vote could come Thursday. SCHIP is part of the Medicaid program.