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March 2015 St@teside

Medicaid Expansion States See Significant Budget Savings and Revenue Gains


As states continue to look for new ways to balance their budgets, early results from twenty-six states that have expanded Medicaid show significant state budget savings after just the first year of expansion. In this new brief, “Medicaid Expansion States See Significant Budget Savings and Revenue Gains,” prepared by Manatt Health Solutions with support from the State Health Reform Assistance Network, the budget impact of Medicaid expansion is examined in two states: Kentucky and Arkansas. 

Early data from these two states show more than $1 billion in expansion-related savings. When projected forward, these financial gains are likely to exceed expansion-related costs for years to come. These early savings point to Medicaid expansion paying for itself at least through SFY 2021— while generating major gains in coverage and reducing the number of uninsured.