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 Alabama’s budget would see a net gain of $540 million over a two-year period if the state expanded Medicaid. Approximately 204,100 uninsured non-elderly adults, or 49 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 approximately 47 percent of those working without insurance; these industry sectors include businesses such as restaurants, general merchandise stores (such as warehouse clubs and supercenters), and nursing care facilities (see Table 1). The most common jobs for low-wage, uninsured workers are cashiers, cooks, freight and stock laborers, and maids and housekeeping staff (see Table 2).
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