Efforts to Walk Back Kentucky’s Expanded Medicaid Program Disappointing News for Small Employers

Governor Bevin’s proposal to scale back the state’s Medicaid program would make it harder for low-wage workers to keep their health coverage, which is bad news for many Kentucky small businesses. Expanded Medicaid eligibility benefits entrepreneurs by leveling the playing field for small businesses, creating a healthier and more productive workforce and pumping new money into the economy.

The state’s expanded Medicaid program allows many low-wage workers to qualify for health coverage, which means that small firms that can’t afford to offer their employees insurance are better able to compete for workers with big businesses that can offer insurance. It also encourages a more productive workforce by extending health benefits to more workers and stimulates economic growth by injecting money back into local economies.  

What’s more, Medicaid expansion can help rein in small business owners’ premium costs. When someone without insurance seeks medical care they can’t pay for, government or charity may pick up some of the cost but the rest remains unpaid. To cover it, insurers charge higher rates when the insured receive care, and these increases get shifted to higher premiums. Expansion means that fewer individuals receive uncompensated care, so fewer costs will be passed on.

The bottom line is that expanded Medicaid programs help lower insurance costs for small businesses and encourage a more robust workforce. With lower insurance costs and healthier workers, small employers can worry less about healthcare and concentrate on growing their businesses and creating jobs. We urge lawmakers to reject this proposal and ensure the state moves forward with a robust Medicaid program that benefits small businesses and their employees.