Thank you Gov. Walker, for expanding health for more Alaskans

Governor Bill Walker’s announcement on Thursday about Medicaid expansion is great news for Alaskans! This will benefit our hard-working families, especially low-income parents, young adults just getting started in life, and uninsured veterans and their families. Whether you are one of the many thousands of people now one step closer to health coverage, a fully insured resident, or a senior citizen on Medicare, Governor Walker’s courage to move forward with Medicaid expansion will effect positive health and economic gains.

In 23 community forums across the Mat-Su Borough in 2013, more than 500 Mat-Su residents ranked access to health care and mental health care as two of the top five priorities for Mat-Su Health Foundation work. Medicaid expansion will help achieve these health care access goals as estimates show more than 4,000 Mat-Su citizens would be eligible for coverage under expansion. More than 40,000 Alaskans will be eligible for basic health care coverage under expansion. Alaskans understand this, and two separate statewide polls show that the majority of Alaskans favor Medicaid expansion.

Coverage improves access to health care and preventive services to help people stay healthy, manage chronic diseases and prevent unnecessary hospitalizations. Access to health care services in a timely way translates to healthier individuals, a stronger workforce and improved economic prospects for families. It will also save lives! Mortality rates in expansion states have declined compared to non-expansion states. Medicaid expansion will even help low income older adults have access to affordable health care as they wait for Medicare benefits — so they will be healthier going onto Medicare when they turn 65.

Access to health care and mental health care in a timely way and in the appropriate setting improves health outcomes for people and helps control costs for all populations, not just those who will gain access to Medicaid. Here in the Mat-Su, a clear example of how expansion benefits us can be drawn from the Emergency Department at Mat-Su Regional Medical Center, which sees five times the number of people with behavioral health issues than our community mental health center. The Mat-Su population nearly doubled from 50,000 people to 98,000 people since 2000 but Mat-Su’s community mental health center grants from the Department of Behavioral Health stayed flat. State funding mechanisms for this safety net population literally drove people to seek emergency care instead of in lower cost settings. These folks delayed care until it was a crisis and presented to the emergency room. With Medicaid coverage, a portion of these individuals could get care sooner, before a crisis occurs, and in a lower cost setting.

The health foundation supports using Medicaid expansion dollars as a catalyst to reform Medicaid to control costs and make the program more sustainable. The Governor is complementing Medicaid expansion with extensive Medicaid reforms. Reform initiatives his Department of Health and Social Services staff have put into place are projected to save the state $240 million. Another $330 million in reform measures have been identified. The federal Medicaid program in general and the expansion program in particular facilitate state innovation, so we encourage the Governor to build on these reforms and to design a Medicaid plan that represents our state’s values.

Medicaid expansion will provide significant economic benefit to Alaska. It will bring our federal taxpayer dollars back to Alaska to work for us, totaling $1.1 billion in new federal revenue over the next six years. It will also add $1.2 billion in wages and salaries paid to Alaskans, while creating 4,000 new jobs. The state estimates $6.6 million in general fund savings in the first year of expansion alone. That’s essential health care services we now fund using all state funds that could be paid by federal expansion funds.

These are big numbers — and big dollars — and the timing couldn’t be better. While most of the state budget news we’ve heard lately is distressing, it’s great to see Governor Walker seize this opportunity to boost Alaska’s economy in a way that also improves quality of life for many Alaskans.