Study: States expanding Medicaid see budget savings, revenue gains

States expanding Medicaid under the Affordable Care Act are realizing savings and revenue gains as a result, according to a study by Manatt Health Solutions released today by the Robert Wood Johnson Foundation. The report examines the budget impact of Medicaid expansion in a sample of eight states (Arkansas, Colorado, Kentucky, Michigan, New Mexico, Oregon, Washington and West Virginia), where savings and revenues are expected to exceed $1.8 billion by the end of 2015. The authors say the findings suggest that every expansion state should expect to reduce state spending on programs for the uninsured; see savings related to previously eligible Medicaid beneficiaries now eligible for the new adult group under expansion; and see revenue gains related to existing insurer and provider taxes.