Kaiser Survey Shows Many States Expand Medicaid Despite Cost Pressures - November 1, 2011

On Oct. 27, the Kaiser Family Foundation’s Commission on Medicaid and the Uninsured released a survey that examined Medicaid spending, coverage and policy trends in states. Results show that despite current budget pressures, 33 states in fiscal years (FY) 2011 and 2012 expanded some aspect of Medicaid coverage, even though almost all states have taken steps to restrict Medicaid spending. As stimulus money runs out and the economy continues to be weak, state Medicaid officials have had to introduce a variety of cost-cutting measures. The most common measures, as noted by the survey, have been freezing or cutting provider reimbursements. The Kaiser survey also found that many more states have begun to add or increase co-payments for beneficiaries for certain services. But even with the fiscal pressures, many states are still actively working on expanding coverage as called for by the Affordable Care Act. The head start on expansion gives certain states eligibility for federal matching funds – instead of having to rely solely on state financing.