Medicaid Expansion: Frequently Asked Questions - How Does Medicaid Expansion Affect State Budgets and the Economy?

For other Medicaid enrollees, by comparison, the federal government pays between 50 and 77 percent of the cost of health coverage, depending on the state.1 To receive the 90 percent match, states must expand Medicaid to people with incomes up to 138 percent of the poverty level; states that expand coverage but not up to the 138 percent level receive only the regular Medicaid match.2 1 KFF, Federal. [...] • Between 2014 and 2017, Medicaid expansion was associated with a 4.4 percent to 4.7 percent reduction in state spending on traditional Medicaid.5 In some states, the net cost of Medicaid expansion was negative.6 • In states that tax managed care plans and health care providers serving Medicaid enrollees, enrollment increases due to Medicaid expansion generate revenue gains that further offset the. [...] In exchange for an increase in federal Medicaid matching funds, states were required to keep Medicaid enrollees in the program until the end of the month in which the public health emergency ended. [...] Medicaid expansion improved access to care and use of high-value services for millions of Medicaid enrollees, without reducing access or quality for those enrolled in another type of insurance.18 Medicaid expansion increased access to primary and preventive care (e.g., having a personal doctor, getting a check-up in the past year) for adults with low incomes.19 In expansion states, people without. [...] Between 2013 and 2022, the gap in uninsured rates between white and Black adults under age 65 shrank by 67 percent in expansion states (versus 47 percent in non-expansion states), while the gap between white and Latino adults shrank by 48 percent in expansion states (versus 30 percent in non- expansion states).50 (See Figure 6.) Medicaid expansion has also improved coverage among American Indians.