SD Dems Make Pro-Budget, Pro-Life Medicaid Expansion “Number One Budget Priority”

Governor Dennis Daugaard still hasn't pulled a decision on Medicaid expansion out of his post-Romney depression, but South Dakota Democrats agree with South Dakota's health care providers: taking advantage of the Medicaid expansion offered by President Barack Obama's Affordable Care Act will make South Dakota healthier, physically and fiscally!

An estimated 48,000 South Dakotans are uninsured, and tens of thousands of others face affordability and accessibility issues. The Affordable Care Act will provide over $2 billion over the next 10 years to provide health care. “Not only is this a critical issue for families without access to health care, but it’s also critical to our state’s economy. That is a huge transfusion of income for communities large and small across our state,” said Rep. Bernie Hunhoff, the House minority leader in the state legislature.

...The costs to South Dakota state government are minimal. According to the Center on Budget and Policy Priorities, Medicaid expansion will bring in $2.1 billion federal dollars to South Dakota over 10 years at an average annual state cost of $15.7 million. Including net savings from uncompensated care, the average annual cost could drop to $9.5 million over 10 years, according to the Kaiser Foundation [press release, South Dakota Democratic Party, 2012.11.30].

Dr. Amanda McKinney from Nebraska agrees that expanding Medicaid means big savings and economic stimulus for her state:

Gov. Heineman has stated that Nebraska cannot afford this expansion of Medicaid, but I would argue that we cannot afford to not participate in the expansion. It is estimated that the average Nebraska family with health care insurance pays a “hidden tax” of $1,107 to compensate for health care for the uninsured. A report done by the University of Nebraska Medical Center found that without the Medicaid expansion the cost of uncompensated care for the uninsured would be $1.069 billion dollars. If the state opts into the expansion, this cost would decline to $419 million dollars, a 61 percent decrease.

In addition, the estimated revenue from the federal government to the state would be $2.9-3.5 billion through 2020. This money is expected to generate $700-$840 million every year in new economic activity in Nebraska. This could finance 10,770 to 13,044 jobs each year [Amanda McKinney, "Nebraska Should Opt into Medicaid Expansion," Lincoln Journal-Star, 2012.11.17].

South Dakota could save money by expanding Medicaid. But Hunhoff and Senate counterpart Jason Frerichs point out that we will also save lives:

"For pennies on the dollar we can give working South Dakotans the security that comes with affordable health insurance," says Frerichs. "Expanding Medicaid will reduce rates of expensive emergency room care and literally save lives across South Dakota. Expanding Medicaid is our number one budget priority.”

More importantly, said the Democratic leaders, the reform will save lives. According to a study by the New England Journal of Medicine, one life is saved for every 176 adults covered through the expansion. That equates to the prevention of up to 272 deaths, based on the 48,000 South Dakotans likely to receive coverage.

“Nothing could be more pro-life than to expand Medicaid as soon as possible,” Hunhoff said [SDDP, 2012.11.30].

Saving money, helping sick people, and saving lives—that's real pro-life legislation! Get with the program, Governor Daugaard: go with the President and expand Medicaid!