Medicaid expansion a proven solution to help Alabamians join, stay in workforce, new report finds

Closing Alabama’s coverage gap would build a healthier, more productive workforce

Medicaid expansion is a proven solution to help people join and stay in the workforce, a new report from Community Catalyst spotlights. States that have expanded Medicaid have seen a greater increase in labor force participation among people with incomes below 138% of the poverty line than states – like Alabama – that have not expanded.

Policymakers’ refusal to expand Medicaid has left nearly 300,000 Alabamians in the Medicaid coverage gap – where they earn “too much” to qualify for Medicaid but not enough to afford private insurance. This lack of coverage hits people of color in Alabama especially hard due to racism and other forms of oppression that have limited economic mobility.

“Every Alabamian should be able to get the medical care they need to survive and thrive,” said Debbie Smith, Alabama Arise’s Cover Alabama campaign director. “Removing financial barriers to health care would make our workforce more robust and more productive. It’s time for Alabama policymakers to close the health coverage gap and invest in a healthier future for our state and for our people.”

Alabama is one of only 10 states where workers cannot access quality, affordable health care due to limited Medicaid coverage. Almost half of Alabama residents in the coverage gap are people of color because of racism and oppression, and 60% live below the poverty line.

Nearly half of Alabama workers do not get employer-sponsored health insurance, the Catalyst report finds. This forces tens of thousands of Alabama families to make tough decisions, either to forgo needed health care or take on thousands of dollars of medical debt. When Alabamians are delaying the care and treatment they need, that hurts their productivity and their well-being.

The urgency of closing Alabama’s coverage gap

The need for expansion is especially urgent right now as state officials unwind COVID-19 pandemic-era Medicaid policies, leaving about 61,000 Alabamians at risk of losing their Medicaid. Without Medicaid expansion in the state, many more individuals and families will be left with no options for affordable health coverage.

Closing Alabama’s coverage gap could create an average of 20,083 new jobs per year and have an estimated positive economic impact of $11.36 billion over the next six years. Medicaid expansion would be one key solution to improving workforce participation across the state.

Rising prices are squeezing household budgets in communities across the country. And for too many Alabama residents, that also means the cost of health care feels increasingly out of reach. State leaders have the opportunity to expand Medicaid so that Alabamians of every ZIP code, race and income have a fair and just opportunity to stay healthy.

“Health care in America is far too expensive for far too many people, but it doesn’t have to be that way. In Alabama alone, nearly 300,000 people would benefit from the expansion of Medicaid, including people with low incomes who are not eligible for coverage and care through their employer,” said Emily Stewart, executive director of Community Catalyst.

“This report is further proof of what communities across the state already know: Medicaid works. It’s past time for politicians in Alabama to listen to their constituents and act.”