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Medicaid expansion’s economic impact in states

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In this HealthAffairs blog entry, healthcare economist Michael Chernew analyzes the economics of Medicaid expansion in various states under the Affordable Care Act.

One of his observations:

“{I}f Medicaid expansion induces previously Medicaid-eligible beneficiaries who were uninsured to enroll at the lower match rate, the state would have to finance that enrollment with less of an economic bounce. This is offset to some extent by federal support for programs otherwise funded by the state. Overall, with reasonable assumptions, a full accounting of the impact of Medicaid expansion on the state budget suggests states may break even, or even come out ahead, particularly if there is a lot of slack in the state economy.”

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