Medicaid is often a state’s largest and “most difficult-to-control expense,” according to the release, but Moody’s analysts believe the biggest Medicaid risk to states revolves around the federal deficit reduction efforts.
“States that opt into the expansion of Medicaid under the new law will have greater exposure to the potential risks that will come with efforts to trim federal spending,” said Kenneth Kurtz, Moody’s senior vice president and author of the report. “The extent of any effects on ratings will depend on how states respond to underlying cost drivers, including any new federal actions.”
More Articles on Moody’s Reports:
Moody’s: Non-Profit Hospital Outlook Negative for Remainder of 2012
Moody’s: 2.8% Increase in Medicare Inpatient Rates a Positive for Hospitals
Moody’s to Review Beebe Medical Center’s Bond Rating Amid Class Action Lawsuit
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