Noteworthy News

Medicaid Helps Fuel State Budget Woes

The end of federal stimulus money, rising health care costs, and growing enrollments are causing Medicaid costs to rise much faster than state revenues, creating major financial problems for many states.

While states face other financial pressures – most notably demand for assistance from local governments in the face of declining property tax revenue – Medicaid remains the biggest financial challenge states currently face.

These are the findings of a survey conducted for the National Governors Association and the National Association of State Budget Officers.

This issue is of particular concern to urban safety-net hospitals, which serve more Medicaid patients and are far more dependent on Medicaid revenue than the typical acute-care hospital.

Read about this continuing crisis and its implications for Medicaid in this Washington Post article and find “The Fiscal Survey of States” hereiStock_000015725011XSmall, on the web site of the National Association of State Budget Officers.

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