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Study: Expanding Medicaid best financial option for states

June 14, 2013

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An estimated 3.6 million fewer people would gain health insurance under the “Patient Protection and Affordable Care Act” if 14 states were to opt out of the Medicaid expansion as proposed, according to a study published last week in Health Affairs. In addition, those states would forgo $8.4 billion annually in federal payments and collectively spend $1 billion more on uncompensated care in 2016 than they would if Medicaid is expanded, the study by RAND Corp. estimates. “Our analysis shows it’s in the best economic interests of states to expand Medicaid under the terms of the federal Affordable Care Act,” said RAND mathematician and lead author Carter Price. The study looks at 14 states whose governors once threatened to opt out of the Medicaid expansion. For more on the study, visit http://tinyurl.com/mxyr2hr.