The Effects of the Medicaid Expansion on State Budgets

Research Report

The Effects of the Medicaid Expansion on State Budgets

An Early Look in Select States

Abstract

This study analyzes the state budgetary effects of Medicaid expansion in Connecticut, New Mexico, and Washington State. Researchers interviewed state budget staff and officials and reviewed state budget documents. Early evidence shows state savings, within and outside Medicaid, and revenue gains alongside limited costs resulting from expansion. Researchers also analyze findings from Kentucky, another expansion state, noting that the two states able to compare overall costs and savings (Kentucky and Washington) both found that expansion yielded net state budget gains. This includes projections for future years when states pay 10 percent of Medicaid expansion costs.

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