Key Facts About the Impact of Medicaid Expansion on Idaho's State Budget

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Idahoans voted to expand Medicaid in 2018, providing 91,000 residents with health coverage so they can see a doctor when they need to. In addition to local savings, unmodified Medicaid expansion will generate savings to the state Catastrophic Care Fund, behavioral health services, community-based substance use disorder treatment for offenders, and mental health services for the probation and parole population. By creating new jobs and increasing economic activity across the state, Medicaid expansion will increase tax revenue by more than enough to cover Idaho’s investment by the first year full savings are realized in Fiscal Year 2022.
Data Notes: This high level summary focuses exclusively on state savings, whereas previous reports from the Center have included additional savings at the local level. Fiscal Year 2022 is the first full year that old cases work through the system and savings to the Catastrophic Care (CAT) Fund are realized. Idaho Department of Health and Welfare has estimated a 50 percent decrease in the CAT fund under unmodified implementation of Medicaid expansion. There would be an additional $10,700,000 in savings if the Idaho State Legislature sunsets the program. Sources are the 2018 Milliman report commissioned by the state and an economic analysis produced in 2018 by University of Idaho Professor Steven Peterson.
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