On August 2, the Kaiser Family Foundation (KFF) released this report presenting interviews with state Medicaid directors concerning the implementation of the national health care reform law’s Medicaid expansion.  The report found that Medicaid directors have concerns regarding funding for the expansion, the administrative burden placed on states, and the availability of providers to treat newly eligible beneficiaries.  Medicaid Directors also expressed concern about the uncertainty of the extension of ARRA FMAP funds.

From the report:

The recession continues to impact state Medicaid programs. Even as the overall economy begins to recover, Medicaid caseload and spending growth remain high, state revenue growth remains weak and almost all states are likely to continue to face budget gaps and shortfalls heading into SFY 2011 and beyond because it could take several years for revenues to return to pre‐recession levels. More than half of the states assume an extension of the ARRA enhanced FMAP through June 30, 2011 (an additional six months) in the SFY 2011 budget. However, the passage of the FMAP increase and timing of that measure by Congress remains uncertain, which could force these states to make additional budget cuts to meet balanced budget requirements if the funds expire mid‐way through SFY 2011. Several attempts to extend these funds has been unsuccessful and the level of financing available has declined from about $24 billion to about $16 billion in last proposal considered. Medicaid agencies are preparing for a key role in health care reform implementation.

Full report: State Medicaid Agencies Prepare for Health Care Reform While Continuing to Face Challenges from the Recession (PDF | 409KB)

Kaiser Family Foundation. (2010). State Medicaid agencies prepare for health care reform while continuing to face challenges from the recession.