A report from the Kaiser Family Foundation provides a mid-FY2010 update to the the annual Medicaid budget survey report, based on discussions with state Medicaid directors. The report details the contuining economic pressures causing states to face increased Medicaid enrollment, while dealing with lower tax revenues and the impending expiration of ARRA stimulus funding for Medicaid federal match.

From the report:

From the beginning of state fiscal year 2010, fiscal pressures have escalated and additional program reductions have become a necessity to balance state budgets. At the half-way point in state FY 2010, a total of 44 states and the District of Columbia reported that program enrollment and spending trends are above the levels projected at the beginning of the state fiscal year. Over half of states – a total of 29 – reported that additional mid-year cuts are likely and 15 states indicate they did not yet know or that it is too soon to tell. Many Medicaid programs have been forced to look at mid-fiscal year cuts in provider rates and program benefits. States cannot reduce Medicaid eligibility this year because a condition of receiving the ARRA enhanced federal Medicaid matching funds was that that states had to maintain Medicaid eligibility.

Full report:  Medicaid's Continuing Crunch in a Recession: A Mid-Year Update for State FY2010 and Preview for FY2011 (PDF | 499.01 KB)

Kaiser Family Foundation. (2010).  Medicaid's continuing crunch in a recession: a mid-year update for state FY2010 and preview for FY2011.