Health Care and the Economic Slowdown
Barbara Coulter EdwardsNational Association of State Medicaid Directors February 15, 2008
Medicaid By the Numbers 50 million covered lives 70% of spending is for the elderly and
people of all ages with chronic or disabling conditions
40% of spending is for people already covered by Medicare
23% of state budgets 60/40 is average federal/state funding split
Economy slows
Medicaid grows
Budget deficit
Cuts to Medicaid:60% fmap means $2.40 cut in Medicaid to save $1 in state GRF (provider rates, eligibility,benefits)
Loss of federal + state funds to local economies
More uninsured
Economy slows
Medicaid grows
Budget deficit
Cuts to Medicaid:60% fmap means $2.40 cut in Medicaid to save $1 in state GRF (provider rates, eligibility,benefits)
Loss of federal + state funds to local economies
More uninsured FederalCuts
Federal stimulus: FMAP
State Actions to Contain Medicaid Costs FY 2002 – FY 2006
32
22
8 9
4
117
4650
25
18
1310
2018
14
7 8
26
1014
1613
25
1517
5048
1921
50
8
4341
50
ControllingDrug Costs
Reducing/FreezingProvider
Payments
Reducing/RestrictingEligibility
ReducingBenefits
IncreasingCopayments
DiseaseManagement
Long-TermCare
Implemented 2002 Implemented 2003 Implemented 2004 Implemented 2005 Adopted for 2006
SOURCE: Vernon Smith, Kathleen Gifford, Eileen Ellis, Amy Wiles, Robin Rudowitz and Molly O’Malley, Medicaid Budgets, Spending and Policy Initiatives in State Fiscal Years 2005 and 2006: Results from a 50 State Survey, Kaiser Commission on Medicaid and the Uninsured, October 2005. http://www.kff.org/medicaid/7392.cfm
Number of States