Medicaid costs offset state revenue gains

Tools

A new report by the National Governors Association shows that revenue for states will creep up slightly, but that much of those gains will be offset by escalating Medicaid costs, reports The Washington Post.

The report concluded that Medicaid will likely be the only state program to receive funding increases, driven in part by more enrollees, less help from the federal government, and continuing spikes in costs.

Medicaid spending grew by 7.9 percent in fiscal 2010. The report forecasts growth of 11.2 percent in fiscal 2011.

The forecast calls for a modest increase in overall state general fund revenue in 2012, although it will remain $21 billion below 2008 levels. However, state funds toward Medicaid spending will increase as much as 18.6 percent, while federal funds will decrease 13 percent. Much of that change is the result of stimulus funding for the Medicaid program coming to an end.

For more information:
- read the Washington Post article
- check out the report

Related Articles:
Doctors, pharmacists sue to block state Medicaid cuts
 
Medicaid cuts costing hospitals more jobs
 
Medicaid faces state, federal tensions
 
Hospitals preemptively lay off workers to save funds