Choosing to expand Medicaid has proven to be an extremely frugal move for 31 states and District of Columbia. A new report from the Robert Wood Johnson Foundation shows states that expanded Medicaid are saving millions — and in many cases, tens of millions — of dollars without sacrificing the number of services they offer.
Researchers examined several sources of savings and new revenue, including decreased state spending on programs for the uninsured, increased revenue from existing insurer and provider taxes and more federal funds for newly eligible pregnant women, high-need populations and other Medicaid enrollees.
In some states, budget savings should even offset the cost of expanding Medicaid through 2021, according to the report. Here are six highlights from the RWJF report on state savings in 2015 related to Medicaid expansion.
1. California saved roughly $250 million in spending on its low-income health program.
2. Colorado saved $96 million in spending on newly Medicaid-eligible childless adults.
3. Kentucky saved approximately $21 million on mental health services.
4. Maryland saved nearly $14 million on uncompensated hospital care.
5. Michigan saved $19 million on prison health services.
6. Pennsylvania saved close to $108 million in state spending.
"States that expanded Medicaid are realizing millions of dollars in savings and new revenue, with the added benefit of thousands of previously uninsured residents gaining coverage and consequently, access to care," said John Lumpkin, MD, senior vice president at RWJF. "As some states continue to debate whether or not to expand, they need only look as far as their neighbors for evidence of the economic benefits that result."
To access a full list of savings and new revenue for each state studied, click here.
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