Study: States expanding Medicaid see budget savings, revenue gains

States expanding Medicaid under the Affordable Care Act are realizing savings and revenue gains as a result, according to a study released last week by the Robert Wood Johnson Foundation on the budget impact of Medicaid expansion in a sample of 12 states. The savings and gains come from enhanced federal matching funds, reduced state spending on programs for the uninsured and increased revenue from existing assessments on health insurers and providers. Among other budget benefits in 2015, for example, California saved $250 million on its low-income health program; Pennsylvania saved $108 million on state-funded general assistance; Colorado saved $96 million on childless adults newly eligible for Medicaid; and Kentucky saved $21 million on mental health services.