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Joint Economic Committee Democrats Chairman - Senator Martin Heinrich (D-NM)

ACA Reduced Uninsured Rate for New Mothers

September 24, 2018

Weekly Economic Snapshot - 9/24 - 9/28

Economic Facts for This Week

  • One year after Hurricane Maria devastated Puerto Rico, the island is still recovering and rebuilding for the future. A new JEC report examines what Congress can do to help, including upgrading the power grid and reducing the island’s dependence on fossil fuels.
  • The Affordable Care Act’s (ACA) Medicaid expansion improved the financial health of new enrollees. In Michigan, Medicaid enrollment led to fewer unpaid bills, bankruptcies, and evictions, as well as improved access to credit markets and increased borrowing.
  • Outdoor recreation drives economic activity in communities across the country, especially in rural areas. The outdoor recreation economy grew faster than the overall U.S. economy in 2016, generating $412 billion in economic activity.
  • For-profit colleges are increasingly popular among college students. But they may lead to more student loans and higher loan amounts, as well as an increased risk of default and worse labor market outcomes.

Chart of the Week

It is critical that new and expectant mothers are able to access the health care they need before, after, and during delivery. Before the ACA, many new mothers who were covered by Medicaid for delivery lost coverage within six months of giving birth. But after the implementation of the ACA, the uninsured rate among women who had given birth in the past year fell by 41 percent from 2013 to 2016. And in states that expanded Medicaid, the rate was cut by more than half. Despite this progress, more than 1 in 10 new mothers still lacked coverage in 20 states in 2015-16. Instead of supporting programs that expand coverage for new mothers, the latest House Republican budget called for $1.5 trillion in cuts to Medicaid and other health programs.

Tracking Trump’s $4k Promise

During the tax debate, the White House claimed that the average American household would see an income increase of $4,000 a year because of the tax cuts. Below are some indicators looking at whether or not Republicans are living up to their promise:

  • Stock buybacks are at record highs, with public companies announcing more than $750 billion in stock buybacks so far this year. Goldman Sachs projects buybacks could soar to $1 trillion by the end of 2018.
  • Average weekly wages for production and nonsupervisory workers are just 2 percent higher than they were before the new tax law, before adjusting for inflation.
  • The average hourly wage for production and nonsupervisory workers—our best measure of the median workers’ take home pay—was lower in August 2018 than it was in August 2017, after adjusting for inflation.

ICYMI

  • The growing need for better maternal health care services in the United States presents an opportunity for midwifery to play a pivotal role in making childbirth safer and less costly.
  • A new analysis shows that contrary to claims made by Republicans, the tax cuts did not lead to higher paychecks or bonuses for workers.
  • The average Wall Street salary rose 13 percent last year to more than $400,000, its highest level since the Great Recession.
  • New research shows that women entering STEM programs without other female classmates are less likely to graduate on time than their male counterparts.

Coming This Week

Permalink: https://www.jec.senate.gov/public/index.cfm/democrats/2018/9/aca-reduced-uninsured-rate-for-new-mothers

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