Posted on August 29, 2011 15:36
Categories: Medicaid
Topics: Medicaid | Spending | State Data
The National Governors Association (NGA) and the National Association of State Budget Officers (NABO) released the Spring 2011 Fiscal Survey of States, finding that at least 33 states have plans to reduce Medicaid provider reimbursement rates for the fiscal year beginning July 1. Facing tough financial climates and the elimination the increased Federal Medical Assistance Percentage (FMAP) funding through the American Recovery and Reinvestment Act (ARRA), on average, governor’s proposed FY2012 budgets include a 2.9 percent reduction in Medicaid funding. However, states’ share of Medicaid is expected to increase by 18.6 percent as federal funding drops by 13 percent. In FY2010, Medicaid accounted for an estimated 22 percent of states’ spending.
From the report:
Fiscal 2011 represented the beginning of a turning point in state fiscal conditions following two of the most difficult years for state finances since the Great Depression. While general fund spending has risen during fiscal 2011 and governors forecast spending to rise again in fiscal 2012, the combination of a loss of Recovery Act funds and a national economy that is recovering slowly are likely to result in the continuation of challenging fiscal conditions for fiscal 2012 and beyond.
Full report: The Fiscal Survey of States (PDF | 2.54 MB)
National Governors Association. (2011). The fiscal survey of states.
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