How much are Alabamians sacrificing for Medicaid?
The Birmingham Business Journal, Jan. 3, 2014
Alabama ranks third from last in the amount of funding taxpayers will sacrifice for the Medicaid expansion, according to a report from WalletHub.
WalletHub, a financial social network, compiled a report that relied on 11 metrics to gauge the impact of the Affordable Care Act on consumers and each state's budget. As stated in the report, the data provides "overall rankings for the states that stand to benefit most and least" from the ACA.
One area WalletHub looked at is the financial effect of the Medicaid expansion on each state's taxpayers. In Alabama, which has so far decided against the expansion, taxpayers are giving up $3.95 in federal funding for every dollar they are set to pay for the expansion. Because Washington D.C. is included, the amount Alabama taxpayers are giving up places Alabama at No. 49 of 51 in the funding sacrificed per $1 tax burden.
Regardless of whether their state takes part in the expansion, "taxpayers across the country are on the hook for Medicaid expansion costs," WalletHub notes. Taxpayers in states taking part in the expansion, however, are set to receive a return on investment for every dollar they spend on Medicaid, the report said.
Another area in which Alabama ranks low is the per capita amount of small businesses that qualify for ACA tax credits. According to WalletHub, the law provides tax credits to employers with fewer than 25 employees who earn an average annual salary of less than $50,000. At .014, Alabama ranks 47th in the number of small businesses per capita.