At the National Governors Association meeting in Williamsburg, Virginia, Governor Martin O'Malley today released a new report on the economic impact of health reform in Maryland. The report, conducted by the Hilltop Institute at the University of Maryland, Baltimore County, finds that implementation of the Affordable Care Act will benefit the state's budget by more than $600 million through 2020, generate more than $3 billion in annual economic activity, and create more than 26,000 jobs.
The report, which was conducted for the Maryland Health Benefit Exchange, also finds that implementing the Affordable Care Act will bring health coverage to 333,000 more Marylanders by 2020.
"This new report details how the Affordable Care Act will benefit Maryland's economy by expanding opportunity and creating jobs," said Governor O'Malley. "By moving forward with implementation, we are supporting healthy and strong citizens, families, communities, and businesses. We remain as committed as ever to moving forward on behalf of Maryland families."
"Today's report highlights the real impact the Affordable Care Act will continue to have in the lives of all Marylanders," said Lt. Governor Anthony G. Brown, who leads the O'Malley-Brown Administration's health care reform efforts. "Thousands of our fellow citizens will be able to get back to work, access quality health insurance, and save money on care. We will continue building on our national leadership in implementing health care reform in order to make Maryland the healthiest state in the nation."
In assessing the budgetary impact of the Affordable Care Act, the Hilltop Institute considered a wide range of savings, such as enhanced prescription drug rebates, and a wide range of costs, such as the state share of the Medicaid expansion. The report finds that "the benefits to the state's budget of ACA implementation exceed its costs through 2020." The report estimates the savings to Maryland's budget through 2020 to be $672 million.
To assess broader economic impact, the report took into account the significant influx of funding to support insurance subsidies for families with incomes up to 400% of poverty as well as significant new funds for the Medicaid expansion.
The report, entitled Maryland Health Care Reform Simulation Model: Detailed Analysis and Methodology, finds that by fiscal year 2020, the Affordable Care Act will:
Generate $3.3 billion in additional economic activity each year in Maryland;
Lead to the employment of more than 26,000 Marylanders in the health care and other sectors; and
Generate $237 million in additional state and local tax revenue each year.
The new report can be found on the website of the Hilltop Institute at http://www.hilltopinstitute.org/.
About the Study:
The lead author of Maryland Health Care Reform Simulation Model: Detailed Analysis and Methodology is Dr. Hamid Fakhraei, the Hilltop Institute's director of economic analysis, econometrics modeling, and forecasting. For this study, the Hilltop Institute developed a dynamic model covering population change, economic impact, employment, and health care expenditures. As a dynamic model, the Maryland Health Care Reform Simulation Model can be updated over time.