Unraveling Montana's Medicaid Expansion: Impact and Implications
Medicaid Expansion in Montana: A Game-Changer
Montana's Medicaid expansion, implemented through the HELP Act in 2016, has been a game-changer. It has extended health coverage to adults with incomes up to 133% of the federal poverty level, approximately $19,391 in 2023. As of now, 220,171 Montanans are enrolled throughout the state. This expansion has not only provided access to essential healthcare but has also led to significant improvements in various aspects of healthcare.
For instance, emergency care visits have decreased by 11% by the third year of coverage. ER visits for preventable dental conditions have dropped by a remarkable 30%. Over 6,100 people have received substance use disorder treatment, and more than 35,000 have accessed mental health services. The availability of more preventive and outpatient care has resulted in a 18% decrease in emergency and inpatient care costs per enrollee by the third year.
State Spending and Medicaid
State spending on Medicaid is a crucial aspect. Data shows that Medicaid accounts for about 13% of Montana's state general fund spending. Despite this, total state Medicaid spending has remained stable, ranging between $270M and $320M annually. With Medicaid expansion, the burden of cost is shared with the federal government, which reimburses about 80% of Medicaid spending in Montana. This has helped offset expansion costs and ensure the sustainability of the program.
Zoe Barnard, a Manatt Health senior advisor, emphasizes that the percentage of the state general fund spent on Medicaid in Montana has remained constant over time. This stability is crucial for the state's budget and allows for continued investment in healthcare.
The Economic Impact of Medicaid
Medicaid expansion has had a significant economic impact on Montana. It has generated $28 million in state savings by reducing emergency and inpatient costs by 18% per enrollee. Additionally, Medicaid has grown Montana's economy by providing over 7,500 jobs across industries.
Dr. Bryce Ward, ABMJ Consulting Co-founder, explains that other spending throughout the economy is generated by the wages paid to those workers or the avoided healthcare spending that is now covered by Medicaid. This creates a positive cycle, leading to more jobs, income, and opportunities.
Benefits to Behavioral Health Services
During the webinar, presenters highlighted the significant benefit Medicaid has had on behavioral health services. Since 2016, access to behavioral health services has doubled. Medicaid supports over 37,000 individuals with behavioral health needs and provides more than $55 million in reimbursement to providers.
This has been a game-changer for those struggling with behavioral health issues, providing them with the necessary support and care. It has also helped rural hospitals by reducing compensated care costs by nearly 60% and extending the Indian Health Service's budget in referrals.
From 2015 to 2022, referrals and services under the Indian Health Service's Purchased Referred Care (PRC) program increased by 124%, with Medicaid covering these costs. This has been a crucial step in improving healthcare access for Native Americans in Montana.