Using data from eight states that have expanded Medicaid — including Arkansas, Colorado, Kentucky, Michigan, New Mexico, Oregon, Washington and West Virginia — the report found expansion states should expect to see:
- A reduced need for state spending on programs for the uninsured and people with behavioral health needs
- Increased savings related to federal dollars for certain newly eligible Medicaid enrollees, including $68 million on pregnant women and $472 million on people with mental or behavioral health issues
- Considerable revenue gains associated with existing insurer or provider taxes
The RWJF report predicts the eight states will see a combined $1.8 billion in budget savings and revenue gains by the end of 2015 as a direct result of the Medicaid expansion.
Researchers also expect budget savings in some states will offset the cost of expanding Medicaid through 2021.
According to John Lumpkin, MD, senior vice president at RWJF, states that expanded Medicaid are finding that it is a “win-win” proposition.
“More people have health insurance, which reduces the states’ costs for caring for the uninsured. Savings to state budgets are in the hundreds of millions of dollars,” said Dr. Lumpkin. “When states expand who is eligible for Medicaid coverage, they see the federal government cover more of the costs of caring for patients who historically have been expensive to care for.”
More articles on Medicaid expansion:
Nebraska hospitals advocate for economic benefits of Medicaid expansion
Iowa health groups lobby for proposed bill that would provide oversight for privately managed Medicaid
Medicaid expansion advocates put pressure on Missouri legislators
