INDIANAPOLIS (AP) — In a story Feb. 11 about an Indiana Hospital Association study of how a proposed expansion of the Medicaid program might affect the state, The Associated Press reported erroneously that the study estimated it would cost Indiana $500,000 to cover an additional 406,000 residents. The study estimates it would cost $503 million to cover those residents, but that the expansion would pump several times that amount back into the economy over the next seven years.
A corrected version of the story is below:
Hospitals: Billions from Indiana Medicaid on table
Indiana hospitals say state could reap billions in federal money under Medicaid expansion
By TOM LoBIANCO
INDIANAPOLIS (AP) — A study released Monday by the Indiana Hospital Association estimates that expanding Medicaid would generate billions of dollars in economic growth for the state, a stark contrast from the budget-busting projections cited by former Gov. Mitch Daniels.
The hospital association's study estimates that using the federal expansion to cover an additional 406,000 residents would cost Indiana $503 million but pump several times that amount back into the economy over the next seven years.
An actuary hired by former Gov. Mitch Daniels' administration found the expansion would cost a budget-busting $2.6 billion over the same time frame.
Using those two vividly different analyses as markers, lawmakers in the Indiana House and Senate were set to consider measures this week on how to implement the federal health care law. Senate Health Chairwoman Pat Miller, R-Indianapolis, will be pushing a proposal to expand Medicaid using the state's health savings account programs, the Healthy Indiana Plan, while Democrats will be pushing for the full expansion under the federal law.
Democrats and supporters of an expansion, including the IHA, have argued the reports Milliman Inc. issued for the state ignore major benefits from covering more uninsured. The IHA study, conducted by researchers at the University of Nebraska Medical Center, found that the could generate $108 million in new tax collections as up to $3.4 billion is pumped into the economy each year.
The goal of the study is to give lawmakers a "positive" look at an expansion, said IHA president Doug Leonard.
"I think the state is taking a cautionary approach to it," Leonard said. "Medicaid has long been a growing program for them. So they're just making sure they aren't biting off something they will regret later. I think that's true of a lot of states."
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