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For Immediate Release


Toni Almasy
Avatar Communications, Inc.

Study Finds Significant Economic Activity Resulting From Potential Medicaid Expansion in Georgia

Analysis of Medicaid expansion indicates that additional spending could result in more than 70,000 statewide jobs and annual state and local tax revenues of $276.5 million

Atlanta, GA – February 13, 2013 - Healthcare Georgia Foundation today announced the results of a study it commissioned on the economic impact of Medicaid expansion in Georgia. The analysis, conducted and reported by William Custer, PhD, J. Mack Robinson College of Business at Georgia State University, found that expansion of the program could result in significant statewide economic activity. Dr. Custer utilized the IMPLAN model to produce estimates of economic impact based on publicly available data, including: 1) the number of new enrollees in the Medicaid Program as a result of expansion; 2) the costs of medical care for those enrollees; and, 3) the state’s share of Medicaid expansion.

“As a statewide funder of Georgia’s health safety net, the Foundation’s efforts are focused on expanding access to affordable quality healthcare for underserved individuals and communities,” said Healthcare Georgia Foundation president, Gary D. Nelson, PhD. “In order to achieve the optimal use of our resources, it is important to understand the health and economic impact of policy decisions on underserved and uninsured populations.”

Medicaid expansion not only benefits the health and well being of those enrolled, this analysis suggests it contributes significantly to economic activity that results in the growth of jobs (most notably in the health sector) and much needed state and local tax revenue. Should the state choose to expand, it is estimated that Georgia would receive an additional $40 billion dollars in Federal funds over the next 10 years.

Highlights from the report include:

  • Projected Medicaid spending generated wages and revenue that supported, on average, a total of 70,343 jobs statewide. These jobs would add an average of $8.2 billion annually to statewide economic output.
  • Additional economic activity would generate increased state and local tax revenue, which was estimated to be on average $276.5 million annually.
  • Although the Atlanta region contains about half of all Georgians, just fewer than 37 percent of the jobs created by Medicaid expansion would occur in the Atlanta region.

States are increasingly investing in economic impact studies to inform and reexamine their decision to participate in Medicaid expansion.

About Healthcare Georgia Foundation

Healthcare Georgia Foundation is a statewide, private independent foundation. The Foundation’s mission is to advance the health of all Georgians and to expand access to affordable, quality healthcare for underserved individuals and communities. Through its strategic grantmaking, Healthcare Georgia Foundation supports organizations that drive positive change, promotes programs that improve health and healthcare among underserved individuals and communities, and connects people, partners and resources across Georgia. For more information, please visit the Foundation online at: