1. Due to the recession and higher unemployment rates, Medicaid enrollment increased from 42.3 million to 54.1 million from 2007 to 2012, and spending on medical services increased in turn, from $292.7 billion in fiscal year 2007 to $383.6 billion in FY 2012 — showing an average annual increase of 5.6 percent. Enrollment and spending are expected to continue increasing as states expand their Medicaid programs under the Patient Protection and Affordable Care Act.
2. On a per enrollee basis, Medicaid medical service spending grew 1.3 percent annually, on average, from 2007 to 2012. Acute-care spending per enrollee increased by 2.4 percent on average each year, while long-term care spending fell by 0.7 percent on average during the time period studied. The decrease in long-term care spending most likely resulted from states restructuring their long-term care services and the rise of managed care, according to the issue brief.
3. Managed care spending grew 14.1 percent on average per year from 2007 to 2012, showing a faster and steadier rate than any other service category. Overall enrollment and state policies expanding the number and types of managed care enrollees and services provided drove the growth. Many states now administer prescription drug services, for instance, through managed care.
More Articles on Medicaid:
Bill Introduced to Coordinate Care for Children on Medicaid
Ozarks Community Hospital to Lay Off 60; CEO Blames State’s Medicaid Position
Effects of Medicaid Expansion Decisions in the South: 3 Statistics
