Hoping for Economic Recovery, Preparing for Health Reform: A Look at Medicaid Spending, Coverage and Policy Trends — Results from a 50-State Medicaid Budget Survey for State Fiscal Years 2010 and 2011
This annual 50-state survey finds that number of states experienced rapid growth in their Medicaid enrollment and spending last year and expect additional growth, though at a slower pace, in fiscal year 2011.
In the survey of Medicaid officials, states reported an average increase in Medicaid spending of 8.8 percent across all states in fiscal year 2010, the highest rate of growth in eight years and well above their original projections of 6.3 percent growth. Medicaid directors attributed the unexpected jump to higher-than-expected increases in eligible families due to the recession, which pushed the national unemployment rate above 10 percent and even higher rates in some states.
For fiscal year 2011 (which runs through June 2011), states budgeted for an average 7.4 percent increased in spending above fiscal year 2010 – a slightly slower rate of growth consistent with their expectations that enrollment growth will slow to 6.1 percent, according to the 10th annual survey and of state Medicaid directors.
The American Recovery and Reinvestment Act of 2009 (ARRA) provided a temporary boost in the federal government’s share of Medicaid costs, providing an estimated $87 billion to states starting in October 2008. ARRA’s increased federal Medicaid support was originally scheduled to end in December 2010, but in August, Congress enacted additional relief for states through June 2011 at a reduced level, providing $16 billion over six months.
The report was released at a Sept. 30, 2010 briefing on state Medicaid programs, the recession and health reform. It was authored by researchers at the Kaiser Family Foundation and Health Management Associates.