There are many reasons to commend Governor Beshear’s recent announcement that Kentucky will be expanding Medicaid through the Affordable Care Act (ACA). Among the numerous important  benefits of the ACA is that it will help with Kentucky’s substance abuse problem—and the Medicaid expansion will further broaden the reach of that benefit.

Governor Beshear's announcement that he’ll expand Medicaid in Kentucky included release of a report showing that expansion will result in a net savings of $802 million to the state budget over the next eight years. The report also demonstrates that not expanding Medicaid would cost the state $39 million over that same period.

But how can expanding health insurance to 308,000 Kentuckians save money in the budget, and how can not doing so increase costs? Here's how.

KCEP Director Jason Bailey made the following statement today about Governor Beshear’s announcement that he will accept the Medicaid expansion:

“Governor Beshear’s decision today to expand Medicaid will increase the health of Kentuckians and strengthen the foundation of our economy. It will allow hundreds of thousands of our neighbors the dignity and security of health care coverage, improving quality of life and allowing Kentucky to make much-needed progress on our poor indicators of health.

The governor’s move will mean coverage for around half of the state's uninsured adults, including workers who toil at low-wage jobs in restaurants, construction sites, nursing homes and day care centers, as well as 9,500 uninsured veterans. It will also allow the state to take advantage of a great deal, generating hundreds of millions of dollars in new income to health care providers that will translate into jobs for nurses and health practitioners across the state. The expansion is a great step toward a healthier state and a stronger Commonwealth.”

The Medicaid expansion that the governor announced today means more Kentuckians will get the treatments they need to stay healthy while avoiding the risk of financial catastrophe should they get sick.