True, but republican states have been living off federal taxes and spending money for decades. The gravy train may be less greasy due to earmark reforms, but states still get a lot of money.
If I was a republican governor I wouldn't hesitate to expand Medicaid. It would free up millions of state dollars that would have been tied up in Medicaid spending, and I could then use that money to...oh I don't know, give rich people a tax cut. I honestly thought red states were just going to do that. Politically there isn't much of a risk considering your constituents would see an immediate benefit. And also, the ACA has allowed states to be very creative with how they institute the expansion. For instance Michigan was able to get the green light to guarantee nearly everyone who benefits from the expansion has to pay a copay (about $2 for check ups/exams, in many cases). It's meant to combat the "free healthcare! boooo" mentality of the far right.