Issue Briefs , Reports , State Materials | Apr 6, 2015

States Expanding Medicaid See Significant Budget Savings and Revenue Gains

Deborah Bachrach, Patricia Boozang, and Dori Glanz, Manatt Health Solutions

As some states continue to debate whether to implement Medicaid expansion under the Affordable Care Act, early results from those that have done so show the impact this decision has had on their state budgets.  States that expanded the number of people eligible for Medicaid are seeing big budgetary savings without reducing services.  This report, prepared by Manatt Health Solutions, analyzes data from eight states, showing $1.8 billion in budget savings by the end of 2015 as a result of Medicaid expansion.  The findings suggest that states expanding Medicaid should expect to see reduced state spending on programs for the uninsured and programs for high-cost patients, savings related to increased federal dollars for newly eligible Medicaid enrollees, and revenue gains related to existing insurer or provider taxes.  In some states, budget savings could offset the cost of Medicaid expansion through 2021.


Expert Perspectives

September 6, 2024

Current Considerations for State Reinsurance Programs

Reinsurance is a long-standing tool for stabilizing health insurance markets and reducing premiums, and has played an important role in the success of the Affordable Care Act’s individual market as part of section 1332 state innovation waivers. Reinsurance increases affordability for consumers ineligible for the premium tax credit (PTC). However, the effects on PTC recipients are smaller, mixed, and have received little attention. This expert perspective summarizes recent research which raises questions about the impact of reinsurance programs on PTC recipients, and highlights related considerations for state policymakers.

CMS Issues Guidance on Renewal Timeliness Post-Unwinding

On August 29, 2024, the Centers for Medicare & Medicaid Services (CMS) released a CMCS Informational Bulletin (CIB) and accompanying slide deck to support states facing renewal backlogs. With this guidance, CMS is providing states additional time—until December 31, 2025—to complete Medicaid and CHIP eligibility renewals, address persistent backlogs in processing redeterminations, and achieve compliance with federal renewal timeliness requirements. This expert perspective provides an overview of the CIB.