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Medicaid is the single most important funding source of critical services for both adults and children who have the most serious mental health conditions. Various sources pay for mental health spending in the United States and Medicaid accounts for more than a quarter of it. It is the bedrock of public mental health services, comprising 52% of state mental health authority revenues. Under the Medicaid expansion in the Affordable Care Act (ACA), about 16 million people will become eligible for Medicaid by 2014. Six to 10 million will be individuals with mental illnesses who are currently uninsured. The ACA also includes several improvements to the Medicaid program that will expand access to effective home and community-based mental health services, increase quality and reduce costs.