Medicaid spending for fiscal year 2011 is estimated to be around $398.6 billion, an increase of 10.1 percent from FY 2010. That total accounted for almost 24 percent of state spending, the single largest element of state spending, according to the report.
Although Medicaid enrollment slowly rose 5.5 percent in FY 2011, compared with 7.2 percent in FY 2010, it is expected the Patient Protection and Affordable Care Act will greatly boost the number of Medicaid beneficiaries in 2014 and beyond.
Factors causing rapid growth in Medicaid costs for states include increased enrollments due to the weak economy and expanded eligibility under the PPACA, elimination of federal funds from the American Reinvestment and Recovery Act and per capita healthcare costs rising faster than the economy.
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