Study: States that didn’t expand Medicaid see faster spending growth

States that opted not to expand Medicaid under the ACA will experience more spending growth this year than states that are expanding the program, according to an analysis by the nonpartisan Kaiser Family Foundation (Source: “States Expanding Medicaid Saw Costs Rise Less Than Non-Expansion States, Analysis Shows,” CQ HealthBeat via Commonwealth Fund, Oct. 20, 2014). 

The Kaiser report shows that states that chose not to expand are projected to see a 6.8 percent increase in the amount of state taxpayer dollars that support Medicaid in fiscal 2015. States expanding the program will only see a 4.4 percent rise in state spending. So far, 27 states, including Ohio, and the District of Columbia have expanded Medicaid.

The state spending growth in non-expansion states will come even though enrollment is expected to grow at much lower rates than in expansion states. The number of people enrolled in non-expansion states is likely to go up by 5.2 percent, compared to 18 percent in expansion states in fiscal 2015.