Expanding Medicaid

Health Affairs reported on the new report that used the RAND COMPARE microsimulation to analyze how opting out of Medicaid expansion would affect coverage and spending, and whether alternative policy options—such as partial expansion of Medicaid—could cover as many people at lower costs to states.

With fourteen states opting out, the study estimates that 3.6 million fewer people would be insured, federal transfer payments to those states could fall by $8.4 billion, and state spending on uncompensated care could increase by $1 billion in 2016, compared to what would be expected if all states participated in the expansion.

The report concludes that in terms of coverage, cost, and federal payments, states would do best to expand Medicaid.

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