National Medicaid spending rose to 3.9% in FY 2017, survey finds

Nationally, Medicaid enrollment growth slowed in fiscal year 2017, while Medicaid spending grew during the same time period, according to a new Kaiser Family Foundation/Health Management Associates survey.

For the survey, researchers asked questions of Medicaid directors in all 50 states and Washington, D.C., to determine Medicaid enrollment and spending trends for state fiscal year 2017 and state fiscal year 2018. The survey took place from June  to August 2017.

Here are six findings from the survey.

1. National Medicaid enrollment growth slowed from 3.9 percent in fiscal year 2016 to 2.7 percent in fiscal year 2017. Medicaid enrollment growth was 13.2 percent in fiscal year 2015 after the ACA's Medicaid expansion was implemented. 

2. KFF said possible contributors to toe slower enrollment growth are "the tapering of new ACA-related Medicaid enrollment, a stable economy, and states' processing of delayed eligibility redeterminations."

3. National Medicaid spending growth slightly increased from 3.5 percent in fiscal year 2016 to 3.9 percent in fiscal year 2017. Medicaid spending growth was 10.5 percent in fiscal year 2015 following Medicaid expansion implementation.

4. KFF cited various drivers of spending growth, such as "rising costs of prescription drugs and long-term care services and supports, and increases in payment rates for most provider groups."

5. In fiscal year 2018, Medicaid enrollment is projected to decrease to 1.5 percent while Medicaid spending is projected to rise to 5.2 percent.

6. The survey found state Medicaid spending grew by 3.5 percent in fiscal year 2017 compared to 2.4 percent in fiscal year 2016. KFF said state Medicaid spending is projected to grow by 6 percent in fiscal year 2018 as Medicaid expansion states shoulder expansion costs and some states see the formula-driven federal match rate for the traditional Medicaid population drop.

Read the full survey results here.

 

More articles on healthcare finance:

CMS releases preliminary CJR program results: 7 things to know
Tenet to close 232-bed Phoenix hospital
Where to invest $10k right now? Chinese hospitals, says one fund manager

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars

>