States Shift Veterans’ Costs to Federal GovernmentImage Banner

States Shift Veterans’ Costs to Federal Government

You are here

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.