Center on Budget & Policy Priorities - Since the major
coverage provisions of the Affordable Care Act took effect in 2014, insurance coverage rates have improved across the country, but the gains are far greater in the states that have expanded Medicaid . As a
result, hospitals in expansion states are
treating fewer uninsured patients, and the
amount of uncompensated care they are providing is declining steeply.
Moreover, contrary to critics ’ claims that Medicaid expansion is financially unsustainable for states , there is increasing evidence that expansion has saved states money, and these savings are expected to grow over time.
Moreover, contrary to critics ’ claims that Medicaid expansion is financially unsustainable for states , there is increasing evidence that expansion has saved states money, and these savings are expected to grow over time.
The Medicaid expansion has had an especially dramatic
impact in Arkansas and Kentucky, which both had high uninsurance rates and
limited Medicaid eligibility for non-elderly adults before health reform.
Both states’ uninsurance rates have
fallen by half in just over a year, and the expansion is expected to save each state more than $100 million by the
time their current state fiscal years end on June 30 .
Meanwhile, the states that have not expanded Medicaid are
falling further behind. In the non-expansion states, large numbers of low - income
people remain uninsured and without
access to affordable health coverage. These individuals are caught in a “coverage
gap ” because their incomes are too high
for Medicaid but too low for subsidies to purchase coverage in the marketplace.
Hospitals in these states continue to provide
large amounts of uncompensated care, and the states are missing the opportunity to leverage billions of dollars in new federal funding through the Medicaid expansion.
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