For many Americans, retirement security seems like an impossible dream. Over the past several years, a number of states have looked at how to make retirement attainable while at the same time reducing their Medicaid spending.
But how do they do this?
A Segal Consulting study suggests states could reduce their Medicaid costs by implementing a state-sponsored retirement savings plan that is made available to their residents working in the private sector (who don’t currently participate in a retirement program at work).
Our analysis showed that when residents participate in a retirement plan and attain that all-important nest egg, it kept them above the poverty line, allowing the states to see a meaningful reduction in Medicaid spending.