A report released by the New Hampshire Fiscal Policy Institute on Wednesday is urging New Hampshire lawmakers to expand Medicaid coverage to people made eligible by the Affordable Care Act or the state could see a failure in the managed care system. Last year lawmakers ordered New Hampshire to transition all Medicaid beneficiaries to a new system in which benefits are administered by three private companies in hopes of bringing in millions in health care savings. State lawmakers now have a choice regarding whether to cover the newly eligible Medicaid beneficiaries. Opting in would make the state eligible for more than $1 billion in federal funds between 2014 and 2020 — money that would help local health care providers and would provide thousands of low-income New Hampshire residents with coverage. Without the Medicaid expansion population, it may be difficult for all three of the managed care organizations to participate in the initiative