HMA recently released a report analyzing the impacts of the CareSource JobConnect Program, which provides employment assistance to non-elderly adults enrolled in Medicaid. CareSource is a national, nonprofit managed care organization dedicated to transforming healthcare for those served by government-sponsored health care programs. The program helps individuals prepare for a job search, obtain employment, and succeed in the workplace. HMA was engaged due to our significant expertise in Medicaid to evaluate the program’s impacts in 3 of the 6 states where it is currently active: Indiana, Georgia, and Ohio. HMA conducted an economic impact analysis to assess outcomes for members participating, a cost–benefit analysis, and a return-on-investment (ROI) assessment, examining the direct and indirect financial benefits to participants, the broader economic impact on the state and healthcare spending, and the total program operation costs incurred by CareSource.
The recently enacted OBBBA law established new federal standards that require states to verify that certain Medicaid enrollees are meeting minimum work or community engagement hours as a condition of continued coverage. Past efforts by states to establish work requirements as a condition of enrollment in Medicaid have resulted in coverage losses because of bureaucratic hurdles that made it difficult for people to comply. A program like CareSource JobConnect can provide support and assistance to those enrolled.
The analysis aimed to help CareSource understand the advantages of this program on those participating, as well as the broader impact on the state’s economy, and demonstrates potential gains for the state, the job seekers, and CareSource’s program if more people took advantage of the program’s benefits.
The report shows significant economic and workforce outcomes, particularly in Ohio and Indiana.
- Ohio led with the highest number of participants and employed workers, generating a return-on-investment of 13:1.
- Indiana showed impressive efficiency, with a strong return-on-investment of 12:1.
- Georgia’s results were still positive with a 5:1 ROI, but there are opportunities for improvement in employment success and economic return that could improve the success for the Georgia program.
HMA examined direct benefits to those newly employed through the program, including annual earnings and earnings supplements such as tax credits; indirect benefits, such as key elements of social determinants of health like food security and safe and affordable housing; new spending: new worker spending due to employment enhanced by the multiplier (defined as the ripple effect that occurs as new jobholders spend a large portion of their earnings, which creates income for local businesses and nonprofit organizations); the Benefit-to-Cost Ratio: The sum of direct and indirect benefits and the multiplier effect, divided by the cost incurred by the organization making the investment. These things together help determine the full ROI for the program.
As more participants receive job placements over time and their incomes increase, earning supplements will decrease, and other indirect benefits will decrease as participants earn more than the maximum amounts for eligibility. Each of the three states saw a net gain to their state budgets in the form of state sales and income taxes as members earn more and are able to spend their wages on goods and services.
| Indiana | Georgia | Ohio | |
| 2024 Participants with Employment through the Program | 87 | 28 | 198 |
| 2024 Participants in the Program | 220 | 188 | 566 |
| Aggregate New Worker Spending | $1,688,001 | $537,923 | $3,110,462 |
| Multiplier Effect | 5 | 5 | 5 |
| Aggregate Benefit to Participants and the Local Economy (new worker spending times multiplier) | $8,440,004 | $2,689,615 | $15,552,308 |
| Estimated Cost Per Participant | $2,938 | $2,230 | $1,988 |
| Benefit—Cost Ratio | 13:1 | 6:1 | 14:1 |
| Return-on-Investment | 12:1 | 5:1 | 13:1 |
To learn more about the program and to download the whitepaper, click here.
HMA has more than 40 years of experience in helping to shape and improve Medicaid programs, and supports organizations nationwide to develop, implement, and evaluate programs for state agencies, local governments, health plans, and other community-based partner organizations. Learn more about how HMA supports Medicaid and our efforts in Housing and Health.
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