From Washington Post: (click for full report)
Republican governors opposing the Medicaid expansion have focused on the costs their states would have to take on. But there are also ways that the expansion would save state governments money, helping to offset at least some of the new upfront Medicaid costs. And in some cases, they’re likely to save states more money on Medicaid than they currently are spending.
First, many state and local governments help hospitals offset the cost of care they provide to uninsured patients who can’t pay for medical care — paying about $10.5 billion, or 18.5 percent, of the cost of uncompensated care, according to a 2008 study cited by the Urban Institute. Having more patients on Medicaid would help bring down those costs for everyone, which is why hospitals are lobbying hard for states to participate in the expansion.