For as long as we’ve been doing this work, we’ve heard people say that Medicaid expansion is a budget buster. That’s a myth. We’re here with the facts.
Medicaid expansion *saves money* for states.
How does Medicaid expansion generate savings to offset such costs? Here’s what the research says:
Medicaid expansion allows states to access an enhanced federal match for some people who would otherwise be covered by traditional Medicaid (Appendix B). Given that states pay between 25 percent and 50 percent of the cost for a traditional Medicaid beneficiary but only 10 percent of the cost for an expansion beneficiary, these savings can be substantial. States can save from 15 cents to 40 cents on every dollar of care it can shift to expansion (assuming 2020 expansion match rates).
Want to read the whole paper? You can download it here.
The Impact of Medicaid Expansion on States’ Budgets
Research shows lots of expansion beneficiaries–these are people who would likely receive traditional Medicaid in the absence of expansion.
Some are people who would have been covered through specific Medicaid programs, such as Section 1115 waivers or the Breast and Cervical Cancer Treatment Program. The Breast & Cervical Cancer Treatment Program is one that Wyoming lawmakers fight about almost annually. Expand Medicaid and shift those costs from state general funds to federal dollars. Save money, save lives.
The research also shows that some beneficiaries are people who used to spend down assets or pursue a disability designation to qualify for Medicaid. Many of those people would qualify for coverage under expansion. The populations affected vary from state to state, depending on the specifics of their traditional Medicaid programs.
There is a reason that 38 states have expanded Medicaid and 0 have left the program. Even though states can leave at any time, it is such a good deal that states stay in.
Not only would Medicaid expansion bring *hundreds of millions of dollars88–new funds! funds that don’t require a match!–but Wyoming could also save money at a time when every single dollar counts.
