Medicaid Costs Leading to Decreased Coverage
June 13, 2012 By Deborah Sexton Law Office, PA
Though the recession officially ended in 2009, states are still struggling to cope with the massive increase in Medicaid expenses associated with the recent economic downturn. Between 2007 and 2009, Medicaid expenses rose by an average of 6.6 percent per year, according to a new study from the Kaiser Foundation, a nonprofit organization.
The study shows that the total amount of state and federal government spending for Medicaid in 2007 was $330 billion. By 2010, the total amount spent on Medicaid was $400 billion.
Many states are now struggling to find a way to pay for this massive increase in Medicaid spending. A few states are spending as much as one-third of their budgets on Medicaid expenses, while almost all are devoting at least one-fifth of their state budgets to Medicaid programs. While the 2009 economic stimulus helped mitigate Medicaid expenses for many states, the stimulus funds are now gone and many states are considering drastic cutbacks in services.
States such as Arizona and Illinois are considering, or have enacted, cuts in Medicaid that will reduce the number of people who are eligible for the program. According to the recent Kaiser study, many of the cost increases incurred during the recession came from new members signing up for Medicaid. It's estimated that 8 million people joined the program between 2007 and 2010. Many of these were families, which had an average increase in enrollment of 7.2 percent per year between those same years.
Though the recession has officially ended, the recovery continues to be slow and states will have to deal with the increased Medicaid costs before state income levels fully recover. This may lead to Medicaid cuts in a number of states.
ABOUT THE AUTHOR: Deborah Sexton
Experienced estate planning attorneys Fayetteville AR of the Deborah Sexton Law Office PA offers estate planning and business planning resources to residents of Fayetteville AR.
Copyright Deborah Sexton Law Office, PA
More information about Deborah Sexton Law Office, PA
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Many states are now struggling to find a way to pay for this massive increase in Medicaid spending. A few states are spending as much as one-third of their budgets on Medicaid expenses, while almost all are devoting at least one-fifth of their state budgets to Medicaid programs. While the 2009 economic stimulus helped mitigate Medicaid expenses for many states, the stimulus funds are now gone and many states are considering drastic cutbacks in services.
States such as Arizona and Illinois are considering, or have enacted, cuts in Medicaid that will reduce the number of people who are eligible for the program. According to the recent Kaiser study, many of the cost increases incurred during the recession came from new members signing up for Medicaid. It's estimated that 8 million people joined the program between 2007 and 2010. Many of these were families, which had an average increase in enrollment of 7.2 percent per year between those same years.
Though the recession has officially ended, the recovery continues to be slow and states will have to deal with the increased Medicaid costs before state income levels fully recover. This may lead to Medicaid cuts in a number of states.
ABOUT THE AUTHOR: Deborah Sexton
Experienced estate planning attorneys Fayetteville AR of the Deborah Sexton Law Office PA offers estate planning and business planning resources to residents of Fayetteville AR.
Copyright Deborah Sexton Law Office, PA
More information about Deborah Sexton Law Office, PA
View all articles published by Deborah Sexton Law Office, PA
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
