Health Reform and State Budget Savings
|December 13, 2010||Posted by ITUP under Blog||
The authors found that, although the federal legislation will require states to increase their spending on Medicaid coverage for low-income adults, those additional state costs will be greatly outweighed by savings in several areas, most significantly:
(1) shifting some of today’s higher-income Medicaid adults into the Exchange, where the federal government is responsible for 100% of their subsidies; and
(2) substituting newly available federal Medicaid dollars for current state and local spending on uncompensated care furnished to the uninsured and on mental health services provided to low-income residents.
On balance, the authors concluded that during 2014 – 2019, total states’ savings will exceed states’ costs by between $40.6 billion and $131.9 billion.
For more, be sure to read the whole report.