Medicaid growth hits near-record lows as economy improves

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http://thehill.com/blogs/healthwatch/medicaid/264085-medicaid-growth-hits-near-record-lows-as-economy-improves


Medicaid growth hits near-record lows as economy improves
By Sam Baker - 10/25/12 12:53 PM ET


State Medicaid spending is at near-record lows, thanks mostly to the improving economy, according to data released Thursday.

Medicaid, which primarily serves the poor, is one of the country's biggest entitlement programs. Yet over the past two years, federal spending on Medicaid has shrunk and state spending has grown at low levels while demand for the program has dropped as the economy improves, according to the Kaiser Family Foundation's annual Medicaid survey.

The findings could challenge one of Republicans' harshest attacks against President Obama — that he has fostered a culture of dependency while the economy has languished.

State spending on Medicaid grew by just 2 percent in 2012, according to Kaiser. States are budgeting for an average increase of 3.8 percent in 2013 — one of the lowest rates in the past 15 years.

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Medicaid is still a drag on state budgets, but not as big a drag as many governors have feared, according to the Kaiser data. About one-third of state Medicaid officials are projecting a Medicaid shortfall in 2013, down from half who made the same projection about 2012.

Ten states are even budgeting for an overall decrease in Medicaid spending, Kaiser said.