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States Shift Veterans’ Costs to Federal Government

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States Shift Veterans’ Costs to Federal Government

July 18, 2011

Today, Stateline released an article detailing a program shifting veterans’ costs from the state to the federal government. States are able to save money while veterans continue to receive services, often at a better level.

According to the article, Washington State began a program in 2003 that moved 9,500 veterans from the state’s Medicaid rolls to the Veterans Affairs rolls. This allowed Washington to avoid paying $27 million in health care bills.

This program does not result in less spending on health care; the cost is simply shifted from the state governments to the federal government. Arizona, California, and Texas are all working to create a program that replicates what Washington has done.

It is estimated that for every $1 spent on the program, the state gets back $8. Montana saved $900,000 in the first year. Maryland expects to save $750,000 its first year while California expects to save $250 million.

Click here to access the full article.