Dunleavy Legally Obligated to Accept Medicaid Expansion Funds

“Medicaid expansion is essential for our state’s efforts to control health care costs and fight crime by expanding addiction treatment. Medicaid expansion has reduced the cost of uncompensated care at hospitals, which saves money for Alaskans who are covered by private health insurance. Alaska’s leading business organizations advocated for Medicaid expansion based on a need to reduce uncompensated care and bring new investment to the state,” said Rep. Fields.

“The evidence is clear that Medicaid expansion is good for Alaska, good for our economy, and Alaskans support it. If Governor Dunleavy wants to end Medicaid expansion, he needs to file a bill and convince lawmakers it’s the right thing to do. Medicaid expansion has insured 37,000 working Alaskans and has been a lifeline for our economy through the recession. A recent analysis found that eliminating Medicaid Expansion in Alaska would cost Alaska’s economy nearly 3,700 jobs, $267 million in annual labor income, and $556 million in annual total economic output under State Fiscal Year (SFY) 2018 conditions. That’s not a cost Alaskans should be willing to accept,” said Rep. Spohnholz.

Medicaid expansion in Alaska started in 2015 and has brought nearly $1 billion in federal investment to the state while ensuring 37,000 Alaskans have health insurance. Since expansion was implemented, health care is the only industry sector in Alaska that has consistently added jobs, moderating the impact of the ongoing recession brought on by low oil prices.