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Study: Medicaid Expansion Plan Would Adversely Affect Indiana Families

A new study finds that Indiana families will be adversely affected by Governor Mike Pence's plan to expand Medicaid in the state.

According to the study published by Federalism in Action and State Policy Network, Medicaid expansion will have several economic consequences in Indiana. The groups say that none of them are good. They argue that these negatives include declining personal incomes for Hoosiers, as well as a shrinking of the state's private sector.
 
"The numbers in this report are truly sobering and should serve as a wakeup call to everyone in the Hoosier state," said State Budget Solutions (SBS) CEO J. Scott Moody.

"In the last 85 years, Indiana has seen its private sector shrink considerably," Moody continued.  "Since 1929, the private sector has shrunk from nearly 94 percent of the economy to just over 70 percent. Medicaid expansion will increase the Hoosier State's costs and only exacerbate this troubling trend."

Moody adds that the problems with Medicaid expansion go beyond the macroeconomics of a shrinking private sector statewide. In order to keep private sector job levels stable, he says that every Hoosier household would have to take a personal income loss of over $3,700 per year in order to keep Indiana from losing nearly 177,000 jobs.

"Governor Pence is letting good politics trump good policy," said Moody, "and unfortunately, his constituents - the hardworking folks of Indiana - will be the ones to pay the price." He adds that the problem is that too many people, including state lawmakers, look at federal dollars as "free money." Moody argues that the federal government is near insolvency and that it is time to pull back the reigns on spending.

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