Medicaid Expansion Is Not Expected to Burden States

States would only see modest costs for implementing the Medicaid expansion under the Affordable Care Act compared to significant increases in federal funds, according to a report by the Kaiser Family Foundation. Some states may see net budget savings even as millions of low-income uninsured Americans gain health coverage.

If all states expanded their programs, state Medicaid spending would increase less than 3% while federal Medicaid spending would increase 26%. An additional 21.3 million people could gain Medicaid coverage by 2022. With other coverage provisions of the ACA, that would cut the uninsured by 48%.

Diane Rowland, executive vice president of the Foundation said, “While some states will see net savings, others will need to weigh the trade-offs between small increases in state spending in return for large gains in coverage supported by mostly federal dollars.”

The ACA set a national floor for Medicaid eligibility for adults with annual incomes at or below 138% of the federal poverty level, which is $15,415 for an individual in 2012. For more information,

Last Updated 06/29/2022

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