Issue Brief , Report , State Materials | Mar 22, 2016

States Expanding Medicaid See Significant Budget Savings and Revenue Gains

Deborah Bachrach, Patricia Boozang, Avi Herring, and Dori Glanz Reyneri, Manatt Health

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 these states.  This report, prepared by Manatt Health, is an update to an April 2015 State Network report, and examines data regarding Medicaid expansion in eleven states, 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.  Previous reports in this ongoing series are available here.