Many states continue to experience the aftermath of the recession, dealing with continued budget deficit problems. Additionally, in June 2011, state budgets will have to account for the expiration of the enhanced federal matching funds for Medicaid that were allowed by the American Recovery and Reinvestment Act. States are also beginning to implement the Affordable Care Act, putting additional strain on state budgets. This report form the Kaiser Family Foundation discusses the impact that these issues are having on the state's Medicaid budgets.

From the report:

Fiscal stress remains a dominant concern for states as they cope with lingering effects of the recession. Many states are facing budget shortfalls and revenues remain depressed half-way through FY 2011. States, many with new governors and legislators, are preparing budgets for FY 2012, anticipating a slow economic recovery and expiration of temporary, enhanced federal Medicaid matching funds from the American Recovery and Reinvestment Act (ARRA) on June 30, 2011. At the same time, states are moving forward with implementation of the Patient Protection and Affordable Care Act (ACA). Even in these challenging times, Medicaid continues to play a vital role in supporting providers, ensuring access to long-term care services and providing coverage to many low-income individuals who would otherwise be uninsured. This report, based on structured discussions with leading Medicaid directors, augments the findings from the most recent comprehensive Medicaid budget survey published in September 2010 to provide a mid-year 2011 update on state Medicaid issues.

Full Report: Waiting for Economic Recovery, Poised for Health Care Reform: A Mid-Year Update for FY 2011 - Looking Forward to FY 2012 (PDF | 364 KB)

Kaiser Family Foundation. (2011). Waiting for economic recovery, poised for health care reform: a mid-year update for FY 2011- looking forward to FY 2012.