Medicaid Expansion: A Good Financial Decision for States?

Medicaid expansion is a good financial deal for states, according to a new analysis by The Commonwealth Fund.

At the heart of this conclusion are three primary considerations:

• The federal government pays 90 percent of the total cost of Medicaid expansion.
• States save money by expanding their Medicaid programs – even after paying their 10 percent share, because they shift the cost of care for some of their residents, currently paid entirely by the state, to Medicaid, for which the federal government pays 90 percent of the cost.
• Any remaining additional state costs represent only a very small portion of expansion states’ budgets.

States that have expanded their Medicaid programs under the Affordable Care Act also appear to enjoy other benefits from their decision to expand, including new jobs in and tax revenue from the health care sector.

Learn more about why Medicaid expansion can be a good financial deal for states in the new Commonwealth Fund report “The Fiscal Case for Medicaid Expansion.”