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 Tennessee’s budget would see a net gain of $900 million over a two-year period if the state expanded Medicaid. Approximately 226,200 thousand uninsured nonelderly adults, or 38 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 construction, accounting for 43. percent of those working without insurance (see Table 1). Restaurants alone employ 15 percent of low-wage uninsured workers. The most common jobs for low-wage uninsured workers in Tennessee are cooks, cashiers, laborers/movers, and janitors (see Table 2).
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