The Impact of State Medicaid Expansion

Special Publications | Health


Monday, December 09, 2013
by Michael Bond and Stephen T. Parente

Arizona has responded to financial incentives in the Affordable Care Act by expanding Medicaid eligibility. What will be the impact of the expansion? There are three primary outcomes:

  • The number of privately insured individuals will fall 333,000 in 2014 and, by 2023, the number of privately insured will be 450,000 fewer than it would be otherwise.

  • The net number of Medicaid participants will increase 1.07 million in 2014 and, by 2023, the number of Medicaid enrollees will be 1.65 million higher than it would be otherwise.

  • The total cost to the state of covering these new Medicaid beneficiaries will reach $906 million annually within the next decade.

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