01/12/2013

National report: impact of Medicaid expansion on states

The NASMHPD report – The Waterfall Effect: Transformative Impacts of Medicaid Expansion on States – is a meta-analysis of 20 studies that have been conducted over the last two years that aim to quantify the impact of the new Medicaid expansion effort on several policy and program fronts.

The meta-analysis is unprecedented and is the first report that shows in a graphic way in one document, the significant impact of several policy events under the Medicaid expansion that has the potential for a positive compounding effect on state budgets, state-wide economies, as well as significantly reducing the number of uninsured people – all simultaneously.

NASMHPD believes “The Waterfall Effect” report can serve as a guide for your organization and members on the potential impacts that would accrue to states that choose to opt in to the Medicaid expansion and potential lost opportunities which are portrayed in three key sections:

• The main section of the report estimates the potential impact of the new Medicaid expansion on state budgets if all states choose to participate in the Medicaid expansion effort. Several factors based on our study show that states could see significant budget gains through the Medicaid expansion process.
• The second section examines the Medicaid expansion from the vantage point of the impact on overall economies and opportunities to increase state-wide revenues. Several studies that have been commissioned by state officials show dramatic revenue increases if states choose to opt in to the new Medicaid expansion program under the ACA.
• A third section of the document details how the new Medicaid expansion would address the uninsured problem in each state – one-third of the uninsured population has a behavioral health condition, and one-half of this group has a serious mental illness – and the ability to improve health status and receive high-quality health care services through the new effort.

A Dozen Key Takeaways from NASMHPD’s Meta-Analysis:

The New Medicaid Expansion program is a generous financial deal for the states, and will help reduce the federal budget deficit.

• The Medicaid Expansion will reduce state budget deficits and increase surpluses.
• The Medicaid Expansion will keep residents’ federal taxes flowing into the state.

The Medicaid Expansion will have a deep and broad positive impact on state economies.

• The Medicaid Expansion means creating new jobs.
• The Medicaid Expansion will generate new revenue.

The Medicaid Expansion will help hospitals caring for a disproportionate share of lower-income and uninsured people.

• The Medicaid Expansion will significantly reduce the number of uninsured adult residents with mental health conditions.
• The Medicaid Expansion will reduce adult death rates.

The Medicaid Expansion will avoid discrimination against people with mental health disabilities.

• The Medicaid Expansion will help individuals with serious mental illness secure broad health benefits.
• The Medicaid Expansion will help homeless individuals obtain care.