The report finds that rapid Medicaid spending growth has been driven, in part, by enrollment increases resulting from the loss of income and private insurance coverage during the current economic downturn, together with continued increases in hospital and prescription drug costs that have affected the entire health care sector.

Issue Paper (.pdf)

This report finds that the primary cause of the state fiscal crisis is the falloff in state tax revenue.

Report (.pdf)

Report (.pdf)

Additional news on Medicaid and state budgets

Report (.pdf)

Additional news on Medicaid and state budgets

The Kaiser Commission on Medicaid and the Uninsured released three new reports today on how states are coping with the fourth year of fiscal stress. The third annual survey of the 50 states reveals a far-reaching impact on health coverage for low-income families at a time when enrollment is increasing due to sluggish economic conditions. Some of the findings from the reports include:

• Medicaid spending growth slowed for first time in 7 years. For 2003 it was 9.3 percent, down from 12.8 percent in 2002, as states continue to cope with the fiscal crisis.
• Over the past 3 years, 50 states have taken action to control drugs costs, 50 have reduced or frozen provider payments, 34 have reduced or restricted eligibility, 35 have reduced benefits, and 32 have increased co-payments.
• The primary cause of the fiscal crisis is the falloff in state tax revenue, with the decline in revenue collection being $62 billion, while spending increased about $7 billion in FY2002.
• Medicaid spending growth between 2000 and 2002 has been driven in part by enrollment growth due to the economic downturn, as well as continued increases in hospital and prescription drug costs.
• Despite slower enrollment growth for the elderly and individuals with disabilities, they accounted for almost 60 percent of Medicaid spending growth during 2000-2002, reflecting their greater use of health care services.

News Release (.pdf)

Presentation Slides (.pdf)

States Respond to Fiscal Pressure: State Medicaid Spending Growth and Cost Containment

Medicaid Spending: What Factors Contributed to the Growth Between 2000 and 2002?

The Current State Fiscal Crisis and Its Aftermath

News on Medicaid and State Budgets: July and August 2003 UpdateNews on Medicaid and State Budgets: May and June 2003 Update

View a webcast of the release briefing

With the U.S. Census Bureau releasing its annual update on health insurance coverage and the number of uninsured Americans shortly, Kaiser Family Foundation resources may be helpful. The Foundation and its largest program area, the Kaiser Commission on Medicaid and the Uninsured, produce several informational resources that analyze America’s health insurance coverage, as well as the policy issues and public opinion regarding the uninsured.

• The Cost of Not Covering the Uninsured Project is an ongoing Kaiser Commission on Medicaid and the Uninsured project that has reported on the consequences of being uninsured, how much the country already spends on care for the uninsured and who is paying, and how much health spending would be for covering the uninsured population.
• The 2003 Annual Employer Health Benefits Survey tracks trends in employer health insurance coverage, the cost of that coverage, and other topical health insurance issues.
• Where Is the Growth in the Uninsured Population Coming From? A series of reports detail information on coverage trends in 2000 and 2001, including a chartbook with 2001 data and observations on health coverage, and discuss whether the new class of uninsured Americans were from the middle class.
• A policy brief and a fact sheet summarize whether being uninsured is a short- or long-term condition for most individuals.
• KCMU has been reporting on the latest state actions regarding Medicaid and SCHIP coverage. With the sluggish economy and states’ fiscal crisis, these public health insurance programs are enrolling individuals who otherwise would add to the uninsured rolls at the same time states are taking cost-containment actions within these programs.
• Public Opinion on the Uninsured. Earlier this year Kaiser Health Report featured public responses to questions on the uninsured policy issue and how it ranks among health care priorities.

The Cost of Not Covering the Uninsured

2003 Annual Employer Health Benefits Survey

Where Is the Growth in the Uninsured Population Coming From?

Is Lack of Coverage a Short- or Long-Term Condition?

State Fiscal Conditions and Health Coverage: An Update on FY2004 and Beyond

Are We Holding the Line on Health Coverage for Low-Income Families?

As the Census Bureau releases the latest data on health insurance coverage, prior research has shown that health insurance coverage improves access to care and health outcomes. New data from the Kaiser 2003 Health Insurance Survey updates what is known about barriers to access to health care.

Chart Pack (.pdf)

A new survey by the Kaiser Family Foundation and Harvard School of Public Health examines public opinion on the current Medicare prescription drug debate. The survey, a follow-up to a broader, more comprehensive survey released in June 2003 about the Medicare program and proposed changes, finds that a majority of seniors want Congress to pass Medicare prescription drug legislation this year, but most worry that they will still pay too much for drugs even if Congress acts (September 2003).

News ReleaseChart PackToplines/Survey

The Senate and House of Representatives each approved legislation in June of 2003 that would establish outpatient prescription drug coverage for Medicare beneficiaries as part of Medicare program reform. Among the key differences in the House and Senate bills that still must be addressed are the treatment of Medicaid beneficiaries and the structure of low-income subsidy programs. The way in which these issues are resolved will have major implications for Medicaid beneficiaries, other low-income individuals, and state budgets, as well as potential cost implications for the federal government. The major issues for low-income individuals and Medicaid in the bills are described in this issue paper.

Issue Paper (.pdf)

This fifth edition of the Federal Budget Chartbook provides a comprehensive overview of the most recent data on federal funding for HIV/AIDS by agency and major program and in the areas of care and assistance, research, prevention, and the international arena. The chartbook also includes data on spending trends since FY 1995. Click here to view the previous editions of the Federal Budget Chartbook.

Chartbook (.pdf)Download the FY 2002 Budget Chartbook Slides in Powerpoint