Annual Medicaid Budget Survey Released by the Kaiser Commission on Medicaid and the Uninsured

The 11th annual 50-State Medicaid budget survey from the Kaiser Family Foundation’s Commission on Medicaid and the Uninsured (KCMU) finds that Medicaid officials in virtually every state are enacting a variety of cost cutting measures as states’ spending for Medicaid is projected to increase 28.7 percent in fiscal year 2012 to make up for the loss of federal stimulus money.

 

Additional findings from KCMU’s 50-State Medicaid Survey include:

  1. While Medicaid directors noted some positive signs of economic recovery, improvements remained fragile and slow in many states.
  2. State budgets for FY 2012 had to account for the expiration of the temporary federal fiscal relief provided through the American Recovery and Reinvestment Act of 2009 (ARRA). Thus, for FY 2012, nearly every state continued to focus on actions to control costs in Medicaid including restrictions on provider rates and benefits and new controls on prescription drug spending. At the same time, states also were moving forward with payment and delivery system reforms by expanding managed care programs and by continuing to re-orient long-term care programs to community-based care models.
  3. Eligibility for Medicaid remained stable due to the maintenance of eligibility (MOE) protections that were part of ARRA and health reform, and a number of states reported targeted eligibility expansions or simplified enrollment procedures.