The recently enacted American Rescue Plan Act of 2021 (ARP) includes new large financial incentives for states to extend health insurance coverage to low-wage workers and other adults earning less than $17,775 a year. These incentives apply to regular spending in a state’s Medicaid program and offer a five-percentage point across the board increase in the federal share for a 24-month period after the state extends coverage. The Kaiser Family Foundation estimates that South Dakota’s budget would see a net gain of $60 million over a two-year period if the state expanded Medicaid. Approximately 27,800 uninsured nonelderly adults, or 42 percent of the state’s uninsured adult population, would gain health insurance. This fact sheet examines which workers and industries would benefit from expansion of Medicaid coverage. The hospitality sector accounts for 28 percent of those working without insurance (see Table 1). Restaurants and other food service businesses employ one in five low-wage uninsured workers in the state.
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