The Impact of Medicaid Expansion on State Budgets

States’ experience shows that Medicaid expansion at the enhanced federal match can generate state savings across multiple budget areas. Those savings can be substantial, offsetting most or all of the state’s share of expansion costs. A full analysis the budget impact of expanding Medicaid must include an assessment of those savings.

This analysis looks at multiple areas where states that have expanded Medicaid have experienced budget savings. It provides estimates of the percent of state expansion costs that might be offset in different areas and notes the factors that will affect the level of savings a state might expect.  For select states, details of actual savings and savings projections are provided.

It is part of the Medicaid Expansion Leadership Team’s Medicaid Expansion Toolkit.