Federal Government Will Pick Up Nearly All Costs of Health Reform’s Medicaid Expansion — Center on Budget and Policy Priorities

Federal Government Will Pick Up Nearly All Costs of Health Reform’s Medicaid Expansion — Center on Budget and Policy Priorities

Claims that states will bear a significant share of the costs of the Affordable Care Act’s (ACA) Medicaid expansion — and that this will place a heavy financial burden on states — do not hold up under scrutiny. Congressional Budget Office (CBO) analysis indicates that between 2014 and 2022, the ACA’s Medicaid expansion will add just 2.8 percent to what states spend on Medicaid, while providing health coverage to 17 million more low-income adults and children. In addition, the Medicaid expansion will produce savings in state and local government costs for uncompensated care, which will offset at least some of the added state Medicaid costs.

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