Government
State budgets squeezed by health care spending
NEWS IN BRIEF — Posted Dec. 24, 2007
Health care costs in general and Medicaid in particular will continue to put pressure on state budgets over the next decade, according to a report released earlier this month by the National Governors' Assn. and National Assn. of State Budget Officers.
The Congressional Budget Office has estimated that state health spending will increase by an average of 8% annually over the next decade, the report noted.
Although Medicaid spending grew by just 1.7% in fiscal year 2006, the report estimates that there was a 7.3% increase in fiscal year 2007, due in part to state funding for Medicare Part D. Medicaid accounts for about 22% of state spending, and health care in general represents about one-third of state spending.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2007/12/24/gvbf1224.htm.
