Policy Documents

The Impact of State Medicaid Expansion in Arizona

Michael Bond, and Stephen T. Parente –
December 12, 2013

In this policy paper, the authors review the effect of the ACA on the state of Arizona.  Arizona has responded to financial incentives in the Affordable Care Act by expanding Medicaid eligibility. What will be the impact of the expansion? 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.