Medicaid Costs Would Be Only Slightly Higher With Expansion, Study Says

If all states implemented the Medicaid expansion within the Patient Protection and Affordable Care Act, the total cost would be only $8 billion more than what states would spend on Medicaid under the PPACA without the expansion from 2013 through 2022 — a 0.3 percent increase, according to a recent study from The Kaiser Family Foundation (pdf).

Using a simulation model from the Urban Institute, the KFF found state-by-state estimates of the impact of the PPACA on Medicaid costs, enrollment and the number of uninsured.

Overall, the impact of the Medicaid expansion would vary across states in terms of costs and the uninsured, but the overall bill of implementing the expansion would not be high because the federal government will be covering almost all the costs.


The study estimated states would cumulatively spend an extra $68 billion from 2013 to 2022 without the Medicaid expansion due to other provisions within the health law, such as increased Medicaid coverage for children and childless adults. If all states expanded Medicaid, that total would be $76 billion.

If all states were to expand Medicaid, eight in particular — Connecticut, Delaware, Iowa, Maine, Maryland, Massachusetts, New York and Vermont — would actually see their Medicaid costs go down between 0.8 percent and 8 percent because the federal government provides higher reimbursement matches for them.

The KFF study comes as several states, including Oklahoma, Texas, Mississippi and several other southern states, have said they will not participate in the Medicaid expansion.

More Articles on Medicaid:

Arkansas Medicaid Faces $138M Deficit Next Year

Medicaid Pegged as Biggest Factor in Connecticut's $365M Budget Shortfall

Saint Anthony Hospital in Chicago Blasts State for Withholding Medicaid Payments

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