Government
Medicaid eats up state budgets
NEWS IN BRIEF — Posted Oct. 25, 2004
In 2003, Medicaid accounted for 21.4% of states' budgets, only slightly less than education. This year, the program is expected to exceed education as a percentage of state budgets, according to a new report from the National Assn. of State Budget Officers.
Medicaid's spending growth, which hit 8% between 2002 and 2003, has been fueled by rising health care costs and large declines in private coverage because of growing unemployment.
"Medicaid is crowding out other parts of state budgets," said NASBO Executive Director Scott Pattison. "Medicaid's unsustainable pace of growth means that over both the short and long terms, states must find some source of relief." States have tried to contain the program's growth by limiting physician reimbursement and setting stricter eligibility requirements. Many states have further plans for such cuts.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/10/25/gvbf1025.htm.
