This brief examines the budget implications of expanding MaineCare (Maine’s Medicaid program) and finds that the state savings coupled with the new revenues are sufficient to offset state costs attributable to expansion in calendar year 2016.
MaineCare expansion would cost Maine $17.2 million in calendar year 2016 as a result of both the increased costs of administering the larger Medicaid program and a portion of the costs for parents who would gain eligibility under expansion. At the same time, Maine could expect to see budgetary savings and revenues of $43.9 million, more than sufficient to offset State costs attributable to expansion in 2016. The brief identifies potential savings in two major categories: savings from accessing enhanced federal matching funds for some current MaineCare enrollees, and savings from replacing State General Funds with Medicaid funds. In addition, Maine could expect increasing provider tax revenues; as provider Medicaid revenues increase with expansion, this would translate into additional tax revenue for the State.
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