Monday, May 03, 2004
Newly-improved fiscal health of states masks looming Medicaid problems
[Robert Tanner, "Report: States struggle with slow growth," Associated Press, The Wichita Eagle, 3 May 2004.]
Most states tweaked their budgets to avoid catastrophe as finances turned sour. Few actually addressed the root causes of costs outpacing income. Legislators are playing with fire, though, as Medicaid quickly grows to a point where budget patches are no longer adequate and the federal bailout dollars dry up:
The nation's governors are the latest group to document signs of improving finances for their states, but - as they issued a new report Monday - the states' top officials tried to dampen expectations of a quick economic recovery.
The National Governors Association, reporting on state finances in the fiscal year that ends next month and the year that begins in July, found steady signs of improvement. But it also found weaknesses, particularly with Medicaid growth and still-weak cash reserves.
The state share of Medicaid spending is projected to be back at double-digit growth next year, at 12.1 percent. This year's growth of the state share of the state-federal health care program for the poor was kept to 4.6 percent, but only because of the $20 billion federal bailout approved last year to help states.
[Matthew Hisrich, "Kansas needs bold Medicaid reform," The Flint Hills Center, 21 January 2004.]
[Robert Tanner, "Report: States struggle with slow growth," Associated Press, The Wichita Eagle, 3 May 2004.]
Most states tweaked their budgets to avoid catastrophe as finances turned sour. Few actually addressed the root causes of costs outpacing income. Legislators are playing with fire, though, as Medicaid quickly grows to a point where budget patches are no longer adequate and the federal bailout dollars dry up:
The nation's governors are the latest group to document signs of improving finances for their states, but - as they issued a new report Monday - the states' top officials tried to dampen expectations of a quick economic recovery.
The National Governors Association, reporting on state finances in the fiscal year that ends next month and the year that begins in July, found steady signs of improvement. But it also found weaknesses, particularly with Medicaid growth and still-weak cash reserves.
The state share of Medicaid spending is projected to be back at double-digit growth next year, at 12.1 percent. This year's growth of the state share of the state-federal health care program for the poor was kept to 4.6 percent, but only because of the $20 billion federal bailout approved last year to help states.
[Matthew Hisrich, "Kansas needs bold Medicaid reform," The Flint Hills Center, 21 January 2004.]
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