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April 2015 St@teside

Medicaid Expansion: An Early Analysis of 8 States Shows Significant Budget Savings

This new report from the State Health Reform Assistance Network (State Network) examines Medicaid expansion across eight states—Arkansas, Colorado, Kentucky, Michigan, New Mexico, Oregon, Washington and West Virginia—and demonstrates that states are realizing savings and revenue gains as a result of expansion.
  • Savings and revenues by the end of 2015 (just 1.5 years into expansion) are expected to exceed $1.8 billion across all eight states.
  • In Arkansas and Kentucky, savings and revenue gains are expected to offset costs of the expansion at least through SFY 2021.

Findings from these eight states suggest that every expansion state should expect to:
  • Reduce state spending on programs for the uninsured;
  • See savings related to previously eligible Medicaid beneficiaries now eligible for the new adult group under expansion; and
  • See revenue gains related to existing insurer or provider taxes.

SCI and the State Network also held a companion webinar, during which the authors of the report walked through their findings. An archived recording is now available.