The study, by the National Conference of State Legislatures, does not bode well for state Medicaid programs, which will lose enhanced federal matching grants in June. Facing these prospects, states are likely to aggressively push for savings through Medicaid RACs, which are due to begin in April.
The report said tax revenues are slowly rising and state government spending is up after a sharp decline during the recession, but revenues remain far below pre-recession levels, and many states face pressure to cut programs like Medicaid.
Eighteen states said their healthcare programs were over budget, partly because a higher level of federal stimulus funding for Medicaid programs was expected.
Illinois had the largest midyear shortfall relative to the size of its budget, at $13 billion, or 47% of its general-fund budget. Arizona, which runs a Medicaid waiver program, ended funding for some transplants on Oct. 1. Democrat lawmakers are asking Gov. Jan Brewer to restore funding to the program.
Read the Wall Street Journal report on Medicaid.
Read more coverage of Medicaid funding shortages:
– CMS Proposes to Let States Implement Medicaid RACs in April
– Medicaid Commission to Study Managed Care Plans, Access to Quality Care
– More than 50M Americans on Medicaid, 16M More Due under Reform Law
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