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 Texas’s budget would see a net gain of $1.9 billion over a two-year period if the state expanded Medicaid. Approximately 1.4 million uninsured nonelderly adults, or 34 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 employing low-wage uninsured workers are hospitality, retail, and health care and social assistance, accounting for almost half (48.5 percent) of those working without insurance (see Table 1). Businesses with a large proportion of uninsured low-wage workers include restaurants, construction firms, and home health care agencies. The most common jobs for low-wage, uninsured workers in Texas are cashiers, cooks, waiters and waitresses, retail sales, and personal care aides (see Table 2).
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