March 20, 2003

AN ILLUSTRATION OF HOW MUCH EACH STATE MIGHT LOSE IN FEDERAL MEDICAID
 AND SCHIP MATCHING FUNDS UNDER THE HOUSE BUDGET RESOLUTION
by Leighton Ku

PDF of this table

ArrowState-by-state impact of cuts in low-income programs
ArrowHouse Budget Plan Calls For Cuts In Key Domestic Entitlement Programs: Cuts Average Four Percent Over Ten Years, Grow Deeper Each Year

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The House Budget Resolution, as modified on March 20, indicates that Function 550 (Health) is being reduced by $98 billion over ten years (FY 2004 to 2013).  Exempting health care for military retirees from the reduction (because it falls under the jurisdiction of the House Armed Services Committee, which is exempt from making cuts) and distributing the $98 billion in reductions proportionally over the remaining entitlements in that budget function yields the estimates that Medicaid will be cut by $92 billion and the State Children's Health Insurance Program (SCHIP) will be cut by $2 billion over the FY 2003 to 2014 period. The exact amount of reductions in federal matching funds for Medicaid and SCHIP that each state would bear is not known, since we do not know
which policy changes would be implemented to attain the estimated amounts. For example, the savings could be applied to reduce allotments to states under the Administration's Medicaid and SCHIP proposal on a pro rata basis or by some other mechanism. The table illustrates how much each state could lose over the ten year period, if losses are distributed evenly across states in proportion to their estimated federal Medicaid and SCHIP expenditures in FY 2003.

 

Federal Medicaid and SCHIP Funds That Could Be Lost: FY 2004 to 2013
(in millions of $)

 

 

 

 

 

 

 

 

United States

$94,000

 

Louisiana

$2,085

 

Oregon

$1,104

Alabama

$1,361

 

Maine

$631

 

Pennsylvania

$4,407

Alaska

$306

 

Maryland

$1,289

 

Rhode Island

$503

Arizona

$1,851

 

Massachusetts

$2,677

 

South Carolina

$1,513

Arkansas

$1,047

 

Michigan

$2,746

 

South Dakota

$220

California

$9,738

 

Minnesota

$1,566

 

Tennessee

$2,350

Colorado

$815

 

Mississippi

$1,456

 

Texas

$5,691

Connecticut

$1,129

 

Missouri

$2,037

 

Utah

$459

Delaware

$210

 

Montana

$273

 

Vermont

$277

Dist. Columbia

$497

 

Nebraska

$508

 

Virginia

$1,222

Florida

$4,059

 

Nevada

$331

 

Washington

$1,685

Georgia

$2,378

 

New Hampshire

$343

 

West Virginia

$780

Hawaii

$285

 

New Jersey

$2,535

 

Wisconsin

$1,636

Idaho

$367

 

New Mexico

$856

 

Wyoming

$115

Illinois

$2,850

 

New York

$12,705

 

Amer. Samoa

$2

Indiana

$1,794

 

North Carolina

$2,883

 

Guam

$4

Iowa

$864

 

North Dakota

$197

 

N. Mariana Isl.

$1

Kansas

$655

 

Ohio

$3,794

 

Puerto Rico

$130

Kentucky

$1,641

 

Oklahoma

$1,140

 

Virgin Islands

$4

Source: Center on Budget and Policy Priorities, based on states' estimates of Medicaid and SCHIP expenditures for FY 2003, as reported in November 2002.

20-Mar-03 Revised