Medicaid Expansion States See Financial Savings and Health Care Jobs Growth - Families USA Skip to Main Content

Medicaid Expansion States See Financial Savings and Health Care Jobs Growth

By Patrick Willard,

03.24.2015

States that have expanded Medicaid under the Affordable Care Act are seeing major budget savings, according to reports released in the past month. These budget savings coupled with new data linking Medicaid expansion to job growth in the health care sector add to the reasons why the program makes good sense for states.

New Jersey sees 43 percent drop in uncompensated care

The latest governor to tout the benefits of expansion is New Jersey’s Gov. Chris Christie, who factored the savings in his 2016 state budget proposal. Bloomberg Politics reported that Christie, during town hall meetings across the state, talked about the benefit to state hospitals and a 43 percent drop in uncompensated care cases.

“Expanding Medicaid was the right decision for New Jersey,” [Christie] said during the 90-minute session in an elementary school gym. “It’s helping to save us money. Our state taxpayers are seeing more federal dollars and we’ve also added more people covered so they don’t go for their primary care in a hospital emergency room.”

Arkansas predicts $370 million in savings through fiscal year 2021

Kentucky and Arkansas are also reporting significant savings. A March 4 issue brief by Manatt Health Solutions for the State Health Reform Assistance Network indicates “significant budget savings and revenue gains” in both states. The brief notes Kentucky is estimating $820 million in savings fiscal years 2014 to 2021, while Arkansas predicts savings of $370 million through the same period.