States Expanding Medicaid See Significant Budget Savings and Revenue Gains

Evidence from states that have expanded Medicaid consistently shows that expansion generates savings and revenue which can be used to finance other state spending priorities or to offset much, if not all, of the state costs of expansion.

Key Findings

Data from 11 states—Arkansas, California, Colorado, Kentucky, Michigan, New Mexico, Oregon, Maryland, Pennsylvania, Washington state, and West Virginia—and the District of Columbia suggests that expansion states should expect to see:

  • Reduced state spending on programs for the uninsured
  • Savings related to previously eligible Medicaid beneficiaries now eligible for the new adult group under expansion
  • Additional revenue from existing insurer or provider taxes
  • Beyond state budget benefits: Medicaid expansion states are seeing broader benefits, including job growth, deep reductions in uninsurance, and related decreases in hospital uncompensated care costs


Read more here: