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Assessing the Fiscal Impact of Medicaid Expansion Following the Enactment of the American Rescue Plan Act of 2021

This report describes the American Rescue Plan Act’s (ARPA) Medicaid matching rate provision and also assesses its fiscal impact for each of the states that have not yet expanded Medicaid, while comparing the available new federal dollars to the cost of expansion.

The recent enactment of the ARPA strengthens the fiscal case for Medicaid expansion by providing states that implement expansion after the enactment of the ARPA with a significant increase in Medicaid funding.