September 10, 2014

Brian Jodice
Study finds expanding Medicaid will hurt Utah families 

Governor Herbert’s expansion plan lowers incomes and costs jobs in the Beehive state

A new study finds that Utah families will be adversely affected by Governor Gary Herbert’s plan to expand Medicaid in the state.

According to the study, published by Federalism in Action (a project of State Budget Solutions), Medicaid expansion will have several economic consequences in Utah – none of them good.

These include declining personal incomes for those living in the state, as well as a shrinking of the state’s private sector as a whole.

“Policymakers should carefully reconsider Governor Herbert’s proposal to expand Medicaid,” said State Budget Solutions (SBS) CEO J. Scott Moody. “It will put the state’s long-run economic growth on a downward trajectory, resulting in a decline in personal income growth of $749 million.”

“Over the last 84 years, Utah’s private sector has already reduced 21.6 percent,” Moody continued.  “Since 1929, the private sector has shrunk from nearly 92 percent of the economy to 72 percent in 2013. Medicaid expansion will increase the Beehive State’s costs and only exacerbate this troubling trend.”

But the problems with Medicaid expansion go beyond the macroeconomics of a shrinking private sector statewide. In order to keep private sector job levels stable, every household would have to take a personal income loss of over $800 per year in order to keep Utah from shedding over 14,000 jobs.

“Governor Herbert is letting good politics trump good policy,” said Moody. “Medicaid expansion will ensure that all Utah residents will be poorer as a result.”

To read the entire study, CLICK HERE.


State Budget Solutions is a non-partisan, non-profit, national public policy organization with the mission to change the way state and local governments do business.

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