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Medicaid expansion could generate extra $4 billion a year of economic output, study finds

The study is from Cover SC, a coalition that advocates for health care coverage in the state.

COLUMBIA, S.C. — A new report says that if Medicaid was expanded in 2026, South Carolina would see a $4.04 billion increase in economic output and a $100 million rise in county and state tax revenue.

South Carolina is one of 10 states that haven't expanded Medicaid coverage under the Affordable Care Act. This means there are individuals below the poverty line that still do not qualify for Medicaid, leaving many uninsured.

The federal government would pay for 90% of the expansion costs, while the state would pay the other 10%, says Cover SC Medicaid Expansion Coalition Chair Teresa Arnold.

"It all boils down to it’s a really good investment. If I learned that if I put up a dollar and someone else put up $9 dollars and I  got something cool at the end of it I'd be really excited about it.”

The report also says that would create an extra 29,000 jobs and 345 million in county and local tax revenue over the first three years.

The Governor vetoed a proviso creating a committee that was tasked with looking at healthcare marketplace reforms in this year's state budget, saying he was "unconvinced that the expansion of Medicaid benefits – which this legislative study committee is tasked with considering – is necessary, nor do I believe it is fiscally responsible."

That hasn't changed after the results of this study, according to a spokesperson for the Governor. In a statement to News 19, they said "Special interest groups have been issuing reports like this for years, claiming that billions in new spending for Medicaid expansion will create new jobs and prosperity," adding that expansion would cost "$2.64 billion over the next decade." 

360,000 people statewide would gain full Medicaid coverage in 2026, according to the report. Sue Berkowitz from the South Carolina Appleseed Legal Justice Center says expansion would benefit everyone, but those getting health care coverage will be most impacted.

"If you’re able to take care of your health care and you’re able to stay healthy, it means an overall improvement in quality of life and you’re able to succeed," says Berkowitz.

The report also breaks down economic impact by county. In smaller counties, like Orangeburg and Sumter, more than 6000 people would be added to Medicaid coverage, and generate 700 jobs in each county.

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