This brief presents an annual survey of state Medicaid officials, finding that FY2010 state Medicaid spending increased an average of 8.8 percent, the highest in eight years.  State Medicaid officials attributed the increase to the economic recession and project that spending will increase 7.4 percent in FY2011. 

 

From the executive summary:

 

At the end of state fiscal year (FY) 2010 and heading into FY 2011, states were still in the midst of the worst economic downturn since the Great Depression with high unemployment, severely depressed revenues and increased demand for services, including Medicaid. While most states expect to see the impact of the recession last for the next few years, they are hoping that 2011 will be a turning point moving toward economic recovery.

Full Report: Hoping for Economic Recovery, Preparing for Health Reform: A Look at Medicaid Spending, Coverage and Policy Trends (PDF | 3.87) 

Kaiser Family Foundation. (2010). Hoping for economic recovery, preparing for health reform: a look at Medicaid spending, coverage and policy trends. Smith, V. and Ellis, E.