BIA Support Medicaid Expansion

The board of directors of the Business and Industry Association voted on November 12 to support expanding the state’s Medicaid program to 138 percent of the federal poverty level provided the following principles are observed.

1) It is better for economic prosperity when individuals and families are insured. The uninsured don’t receive appropriate health care services when and where they need them, which ultimately leads to a costlier health care system. Health care providers aren’t reimbursed for treating uninsured patients, which ultimately impacts the amount cost-shifted onto other payers, such as businesses and their employees.

2) Any proposal to expand the state’s Medicaid program should demonstrate it will not lead to additional cost-shifting to the business community and will lead to improved access, lower rates of the uninsured and better outcomes.

3) An expansion of the state’s Medicaid program should maximize use of the private health insurance market to the extent allowed under federal law and minimize the effect of crowd-out (the number of individuals currently insured through an employer who drop private coverage to choose Medicaid).

4) Should federal funding become unavailable or become available at an amount less than previously committed, lawmakers should reevaluate the feasibility of continuing with an expanded Medicaid program.

5) Any expansion of the state’s Medicaid program should not place additional financial burden on the business community, such as an increase in business tax rates.

“In choosing to support expanding the state’s Medicaid program, assuming the final legislation observes our guiding principles, the board recognized the connection between the health of a population and the state’s economic prosperity and that regular, preventive care costs less, will lead to less utilization of health care services and ultimately lower health insurance costs for businesses and individuals,” said BIA President Jim Roche. “The high cost of health insurance is one of the top concerns of business owners throughout New Hampshire and the primary driver of premium cost is consumption of health care."