Myth #2 – Medicaid Expansion Costs State Taxpayer MoneyMultiple experts project Medicaid expansion will save Virginia taxpayers about $200 million per biennium because the federal government will pay 90-100 percent of the cost of prison healthcare, charity healthcare at university hospitals (e.g. the University of Virginia and the Medical College of Virginia), community service board programs (mental health), free clinics and other Virginia-taxpayer funded programs.