State Cost of Affordable Care Act's Medicaid Expansion Modest
(HealthDay News) – Implementation of the Affordable Care Act's (ACA) Medicaid expansion will likely result in modest state costs by 2022, but will gain health care coverage for more than 20 million uninsured Americans, according to report published by the Kaiser Family Foundation.
In light of the Supreme Court ruling that made the ACA's expansion of Medicaid eligibility a state option, John Holahan, and colleagues at the Urban Institute for the Foundation's Commission on Medicaid and the Uninsured provide key data for state officials to consider. The analysis was conducted for all 50 states and the District of Columbia.
The authors note that, although there is variation across states, with the expansion of Medicaid, by 2022, state spending would increase by about 3%, and federal Medicaid spending would increase by 26%, while more than an additional 20 million individuals would gain health care coverage. Most of the increasing Medicaid spending would be for the newly eligible. In conjunction with other ACA provisions, implementation of the Medicaid expansions could reduce the number of uninsured by almost half (48%), relative to the uninsured without the ACA
"States are deciding whether to expand the Medicaid program, and they clearly will be balancing improvements in coverage against new costs for states," Diane Rowland, executive vice president of the foundation, said in a statement. "While some states will see net savings, others will need to weigh the trade-offs between small increases in state spending in return for large gains in coverage supported by mostly federal dollars."