Moving Veterans Off of Medicaid Decreases Costs

In an effort to curb Medicaid costs and spending, states are shifting health care costs to the federal government by locating eligible military veterans receiving Medicaid and signing them up for health benefits through the US Department of Veteran Affairs (VA). States throughout the nation are following the lead of Washington and implementing this program. In the case of Washington, approximately 9,500 veterans have been moved from the Medicaid to the VA, saving the state $27 million in health care costs. Under this program, the state spends less money and the veterans receive equal or greater coverage. Imitating this model, Maryland expects to save $750,000 in the first year, while California estimates savings of $250 million.