State governments are expected to benefit significantly from the implementation of the Patient Protection and Affordable Care Act, according to a new study by the Robert Wood Johnson Foundation.
According to the report, which was published in conjunction with the Urban Institute, state governments are expected to cut their Medicaid expenditures between $92 billion and $129 billion between 2014 and 2019.
The study’s authors could only make estimates due to program variations. “Spending effects will not be uniform among states. Each state’s costs and savings will depend upon its Medicaid eligibility rules, characteristics of its uninsured population, and other factors,” the report said.
Among the projected savings: A 50 percent decrease in the amount spent on uncompensated care, which would save up to $52 billion, and the elimination of coverage mandates for adults with incomes above 138 percent of the federal poverty level, which would save $69 billion.
The report concludes that the federal government may spend up to an additional $743 billion on Medicaid, some of which would offset expenditures on the state level.