Schmudget Blog
— filed under: ,

Medicaid Expansion Will Save Washington State Money

Posted by Kim Justice at Oct 15, 2012 02:10 PM |
Filed under: ,

One of the most compelling arguments in favor of Medicaid expansion, in addition to the hundreds of thousands more people who will obtain coverage, is the expansion will actually save the state money.

How is this possible?

The federal government will pay for 100 percent of the costs for the first three years, gradually tapering down to 90 percent in 2020 and beyond. Over the first seven years, the state’s share of costs is a mere 1.5 percent.

However, savings outweigh any costs. The cost of current programs such as Basic Health and Disability Lifeline will be shifted to the federal government at the higher contribution rates mentioned above.

Savings are estimated at $120 million from 2014-2020. And much of the savings are realized upfront—in the first two years, the state will save $200 million from full expansion.(1)

break out 3 ME

The overall savings to the state will likely be even greater as the ripple effects of covering more people are seen throughout the health care system- such as fewer emergency room visits and better prevention as a result of increased access to chemical dependency and mental health treatment.

As stated in a recent Urban Institute report, “State costs for 2014 to 2017 would actually be higher if the state opts out of any expansion.”(2)

Full expansion of Medicaid is a deal the state cannot afford to pass up.

This is the third post in a series Why Medicaid Expansion is a Good Idea. Click here to see the full info graphic.
 

1. Matthew Buettgens, et al., Medicaid Expansion Options for Washington (The Urban Institute, September 2012). http://www.urban.org/UploadedPDF/412672-Medicaid-Expansion-Options-for-Washington.pdf;  reflects Budget & Policy Center calculations of data from this report.

2. See footnote 1

 

Document Actions
HIGHLIGHTS

Sign Up and Save the Date!

We will host two Budget Matters policy summits this year – one in Spokane on October 31 (register now) and one in Seattle on December 6 (registration coming soon)! 

Our Policy Priorities

Washington state should be a place where all our residents have strong communities, great schools, and the chance for a bright future. Our 2017-2019 Legislative Agenda outlines the priorities we are working to advance to build a better Washington.

Budget Beat!

Check out the Budget Beat webinars we hosted throughout the 2017 legislative session, including our most recent Budget Beat about federal budget proposals, featuring Louisa Warren of the Center on Budget and Policy Priorities, on our YouTube channel

Testimonies in Olympia

To advance our legislative priorities, the Budget & Policy Center team was in the state capitol throughout session testifying on a wide range of bills. Watch our testimonies on TVW:
Misha TVW