Alabama Medicaid Expansion: Summary of Estimated Costs and Savings

Prepared for the Alabama Hospital Association

Alabama is currently one of only 14 states that have not expanded Medicaid, leaving more than $1 billion in federal money on the table each year that would boost economic activity and strengthen the ability of hospitals and other healthcare providers to serve residents throughout the state, and leaving hundreds of thousands of Alabama residents without health coverage. In response, Alabama hospital leaders are analyzing the costs and savings associated with expansion.

For the Alabama Hospital Association, Manatt Health produced an analysis building on evidence from states that have already expanded their Medicaid programs. Manatt’s analysis estimates that Alabama stands to free up more than $58 million in state funds in the first year of expansion, and nearly $88 million in fiscal year 2023. These funds could be invested in the state’s health system, including to help offset some of the costs of expanding Medicaid. Additionally, more than 300,000 individuals would gain coverage in the first year.

Click here to view the presentation sharing the findings.

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