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 Carolina’s budget would see a net gain of $600 million over a two-year period if the state expanded Medicaid. Approximately 188,000 uninsured nonelderly adults, or 40 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 top three industry sectors in South Carolina employing low-wage uninsured workers are hospitality, retail, and administrative/support/ waste management services which together account for almost half of those working without insurance. Another one-fifth of uninsured low-wage workers are found in the construction and manufacturing sectors (see Table 1). Restaurants alone are the top employers of these workers (17 percent). The most common jobs for uninsured low-wage workers are cashiers, construction laborers, and cooks (see Table 2).
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