Total Medicaid spending increased by 1.1 percent this year, far lower than the 10.6 percent witnessed in FY 2011. Medicaid outlays continue to grow because enrollment has swelled due to the economic recession, poor jobs market and higher per capita healthcare costs, according to the report. Yesterday, CMS announced per capita costs in 2011 were $8,660.50 compared with $8,402.30 in 2010.
In order to contain Medicaid costs in FY 2013, several budgetary actions have been considered. For example, 18 states plan to limit Medicaid benefits, 17 states want to cut costs for prescription drugs and 15 states plan to reduce provider payments.
So far in FY 2012, six states have made mid-year program cuts in Medicaid: Alabama, California, Louisiana, Missouri, Pennsylvania and Washington.
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