The "woodwork effect" in Medicaid expansion refers to the surge of new enrollees who were already eligible for the program but only signed up after the implementation of Obamacare. While the federal government initially covered 100% of the costs for new patients, that figure is scheduled to drop to 90% in 2017, placing a growing financial burden on state budgets. This shift has led to a marked increase in total spending and administrative complexity for state healthcare systems.
