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March 10, 2025

Report: Loss of Medicaid tax credits would cost CT $129.3M in economic output, 600 jobs

PHOTO | CT MIRROR Access Health CT
By Andrew Larson

A recent analysis by The Commonwealth Fund, an independent, nonpartisan organization based in New York City, found that if Congress doesn’t extend Medicaid tax credits, a cascade effect will ripple across the healthcare industry, reducing overall economic activity in every state.

In 2021, Congress passed legislation that created premium tax credits for low- and  middle-income individuals with plans in state-based health insurance marketplaces, including Access Health CT.

If Congress does not reauthorize that legislation, about 4 million Americans would lose their health insurance after Dec. 31, 2025, the report states.

Connecticut would see a loss of $63.5 million in federal funding if the tax credits expire, according to the analysis. That would cause the Nutmeg State to lose $129.3 million in economic output and $82.6 million in GDP.

In addition, 592 people would lose their jobs in Connecticut, including jobs in healthcare and related industries.

Also, if the tax credits disappear, health insurers will cut payments for patient care to hospitals, doctors’ offices, pharmacies and other health care providers, according to the report.

“The direct, indirect and induced effects of ending the enhanced credits will create serious hardships for health care providers, other businesses and the workers they employ,” the report concludes. “Moreover, the lower tax revenues that state and local governments receive will make it more difficult for them to balance their budgets.”

Click here to see the full report.
 

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