The Effects of the Medicaid Expansion on State Budgets: An Early Look in Select States

As of March 2015, 29 states (including the District of Columbia) adopted the Medicaid expansion, though debate continues in other states. In deciding whether to implement the Medicaid expansion, the effect on state budgets has been a key issue for policy makers. This brief examines the early budget effects of expansion in three states: Connecticut, New Mexico, and Washington State. These findings are based on interviews conducted with budget officials and staff in each of the three states; the interviews focused on their state’s experiences in this early period, when the costs of those newly eligible are fully financed with federal dollars.