States feel impact of Medicaid spending, survey says

Medicaid spending continues to strain state budgets, according to a survey released by the National Governors Association and the National Association of State Budget Officers.

Medicaid spending increased by 7.5% in fiscal year 2005. States appropriated an increase of 5.5% for Medicaid spending for fiscal year 2006.

Some other survey statistics: 26 states anticipated Medicaid shortfalls in fiscal 2005 due to Medicaid costs. Combined shortfalls in fiscal 2004 and 2005 totaled more than $5.9 billion.
 
States also have long-range concerns about the costs of sustaining Medicaid programs. Medicaid growth is estimated to be between 8% and 9%.

See the Fiscal Survey of States at http://www.nga.org/Files/pdf/FSS0512.PDF.