States Expanding Medicaid See Significant Budget Savings and Revenue Gains

Prepared for the Robert Wood Johnson Foundation State Health Reform Assistance Network

In addition to the impact that state decisions to expand Medicaid have had on coverage rates across the country, there is an increasing body of evidence showing consistent economic benefits among expansion states. In a new report for the State Health Reform Assistance Network, Manatt Health examines data on Medicaid expansion from 11 states and the District of Columbia, demonstrating that states continue to realize budget savings and revenue gains as a result of expanding Medicaid. Savings and increased revenue in expansion states fall into three major categories, including:

  • State savings from accessing enhanced federal matching funds,
  • State savings from replacing general funds with Medicaid funds, and
  • Revenue gains through assessments or fees on providers and/or health plans.

Beyond state budget benefits, Medicaid expansion states also are experiencing broader benefits, including health sector job growth, deep reductions in uninsurance and related decreases in hospital uncompensated care costs.

The new report is an update to Manatt Health's April 2015 Report for the State Health Reform Assistance Network. To read the updated report, click here.

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