The Low Income Health Program (LIHP) in California is expected to have significant economic benefits in the counties where it operates. The program will provide comprehensive health benefits to low-income adults who are currently ineligible for Medi-Cal coverage. The county health spending on LIHPs will support economic output and jobs in hospitals, clinics, and other health care settings, as well as in medical supply companies and other health care suppliers. Additionally, the federal matching dollars brought in as a result of the county investment will serve as a stimulus to the local economies. An analysis using IMPLAN 3.0, an industry-standard input-output modeling software package, found that for every dollar spent by counties on LIHPs, economic output would increase by $2.50 to $3.54, including the federal matching dollars.
