State budgets will be facing a new economic force that could put them further into debt after purposefully making people unemployed. Their medicaid systems is facing a surge of new applicants who lost their health benefits from the private sector.
North Carolina is an example of what’s to come:
Before the pandemic, as many as 2.1 million North Carolinians enrolled in Medicaid, the state-sponsored health care provided to low-income earners. Richard said at least 75,000 have been added since March.
“As we see more and more people coming in Medicaid, then obviously the cost goes up, and in an economic downturn that we have, the ability to pay for that is going to be really important,” he said.
Still, with nearly 1 million people out of work, the individuals going on Medicaid is only a fraction of those needing health insurance.
“What you’re going to have is a system that’s been stretched as far as it can go for people who can provide those services, a health care system that is shifting a lot of folks to Medicaid, which pays less than commercial plans pay, and a significant number of uninsured individuals that will still need health care,” he said.
Source: 11 Eyewitness News