January 9, 2017
To address shortfalls in retirement savings, some states are establishing workplace payroll-deduction individual retirement account programs for employees in the private sector. As other states look at programs to build retirement savings, they are also asking how a population better prepared for retirement would affect public safety-net programs, especially Medicaid.
Segal Consulting conducted a study of states and the District of Columbia to estimate the impact of expanded retirement savings by individuals not currently participating in a retirement plan on future Medicaid expenditures. The result of the analysis showed states could realize meaningful savings on Medicaid spending by requiring a retirement savings plan be available for private sector workers.
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