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The Effect of Health Reform on State Budgets

The Effect of Health Reform on State Budgets

This February 2011 analysis by the Kaiser Family Foundation finds that while there will be some new costs for states associated with the large expansion of Medicaid, the ACA also creates new savings and revenues for all states, along with opportunities for states to achieve further, often longer-term state savings. States will play a large role in the implementation of the major ACA provisions, and reported fiscal impacts have varied widely. This variation has contributed to the political controversy over states’ role, and high costs have also been cited in litigation.