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State of Play and What’s to Come
The National Institute for Health Care Management (NIHCM) Foundation is a nonprofit, nonpartisan organization dedicated to improving the health of all Americans by spurring workable and creative solutions to pressing healthcare problems.
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NIHCM – Medicaid Expansion: State of Play and What’s to Come
Conclusion
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Filed under: Health Economics, Health Insurance, Healthcare Finance | Tagged: medicaid expansion, National Institute for Health Care Management |
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Medicaid Expansion Would Increase Federal Spending by $404.4 Billion
The Robert Wood Johnson Foundation and Urban Institute recently released a study on the projected economic impact of expanding Medicaid eligibility for states. Here are some key findings from the report:
• 19 states have not expanded Medicaid eligibility under the Affordable Care Act (ACA).
• From 2017 to 2026, expansion in these states would increase federal spending by $404.4 billion.
• Each state dollar would draw down between $7 and $8 in net federal funding.
• Higher caseloads would increase state Medicaid spending by $75.9 billion to $83.5 billion.
• Reductions in uncompensated care would save states $21.8 billion to $27.1 billion.
• Federal subsidies in health insurance marketplaces would fall by $129.1 billion.
Source: Urban Institute, August 2016
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Medicaid Expansion Increased Medicaid Revenue by $5 million Per Hospital
The Urban Institute recently released a report that examined the effects of the ACA on hospital finances in 2015. Here are some key findings:
• Medicaid expansion increased Medicaid revenue by $5 million per hospital.
• Medicaid expansion reduced costs of uncompensated care by $3.2-M per hospital.
• The $3.2 million increase represents an 18.1% increase in Medicaid revenue.
• Medicaid expansion improved average operating margins by 2.5 percentage points.
• In nonmetropolitan hospitals, expansion increased operating margins by 4%.
• Medicaid expansion improved excess margins by 1.7 percentage points.
Source: Urban Institute, April 3, 2017
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