Unlock Savings: White Paper on Potential Cost Savings to Kansas Correctional System through ACA Medicaid Expansion

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Medicaid expansion could save the Kansas Department of Corrections ~$11 million. Cost savings would result from Medicaid covering the costs of inpatient hospital stays exceeding 24 hours for incarcerated individuals; expanded coverage for mental health and substance abuse services; and expanded coverage reaching newly-released individuals, addressing mental health and substance abuse concerns, as well as general health care needs, reducing recidivism.

Published 2019-01-25

Executive Summary

This white paper describes three sources of cost savings to the Kansas Department of Corrections (KDOC) likely to result from a Medicaid expansion pursuant to the Affordable Care Act (the ACA):

  1. Medicaid funding covering the costs of inpatient hospital stays exceeding 24 hours for incarcerated individuals (which are not subject to the typical prohibition on the use of Medicaid funds for incarcerated individuals). Estimated annual savings are approximately $2,670,000.
  2. Expanded coverage for mental health and substance abuse services, reducing the number of persons who become incarcerated. Estimated annual savings are approximately $5,975,000.
  3. Expanded coverage reaching newly-released individuals, addressing mental health and substance abuse concerns, as well as general health care needs, reducing recidivism. Estimated annual savings are approximately $2,345,000.

These expected savings to KDOC are based on the research and certain assumptions described below. We estimate annual savings to KDOC of $11,000,000.