The 131st Annual Meeting (November 15-19, 2003) of APHA

Abstract #53519

Gerald A. Doeksen, PhD, Department of Agricultural Economics, Oklahoma State University, Room 513 Ag Hall, Stillwater, OK 74078, 405-744-6081, gad@okstate.edu

Although there are a tremendous amount of information about the Medicaid program services, the economic impact of the program on a state’s economy is not well known. A study completed for Alaska estimated the economic impact of the program for FY 2001. A widely accepted input-output model known as “IMPLAN” was used to estimate the direct and secondary effects. In FY 2001, total Medicaid expenditures in Alaska equaled $574.5 million of which 74 percent was federal funds and 26 percent, or $150.1 million, was State General Funds. As a result of the Medicaid expenditures for direct health care services, 5,158 health sector jobs were created in Alaska and $219.8 million in income was generated in the health sector. As these workers purchased goods and services in the economy, their spending generated 3,559 jobs in other businesses in Alaska’s economy and created $114.3 million in income. The total employment and income created from health care services expenditures was 8,717 jobs and $334.1 million in income in FY 2001. Similarly, 191 division and contract employees worked directly for the Medicaid program and earned $9.9 million in income in FY 2001. As these employees purchased goods and services, they generated 94 additional jobs and $2.2 million total employment impact of 285 jobs and a total income impact of $12.1 million. Combining the health care sector and state/contract jobs and income, the total employment impact was 9,002 jobs and $346.2 million income impact. In summary, this model can easily be adopted for use in other states and will be useful for policy decisions as budget costs are considered.

Learning Objectives:

• to demonstrate to conference participants how important Medicaid dollars are for creating jobs and income.
• To educate health professionals about the concept of health employment and income multipliers
• To provide health professionals with knowledge as to how to get a study completed in their state

Presenting author's disclosure statement:
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.