The Slowdown In Medicaid Expenditure Growth
End Notes
[1] The federal Medicaid growth rate in 2005 was temporarily lowered because fiscal relief provided $6 billion in extra federal funding in fiscal year 2004. If we adjust for this temporary change, total (federal plus state) Medicaid expenditures in fiscal year 2005 rose a comparatively modest 6.7 percent.
[2] Based on monthly data about the amount states draw down from the U.S. Treasury for Medicaid.
[3] Vic Miller, “Medicaid Spending Slows Amid General Spending Dip,” Federal Funds Information Service, March 14, 2006.
[4] C. Borger, et al., “Health Spending Projections Though 2015: Changes on the Horizon,” Health Affairs web exclusive, Feb. 22, 2006.
[5] J. Holahan and A. Cook, “Changes in Economic Conditions and Health Insurance Coverage, 2000 to 2004,” Health Affairs web exclusive, Nov. 1, 2005.
[6] Stan Dorn, Barbara Smith and Bowen Garrett, “Medicaid Responsiveness, Health Coverage and Economic Resilience,” Joint Center for Political and Economic Studies, Sept. 2005.
[7] Hurricane Katrina may have a modest effect. According to data from CMS’ State Payment Management System, Medicaid drawdowns for Louisiana and Mississippi are lower so far this year than last year, probably because large numbers of people evacuated and many health care facilities were shuttered. But these reductions were largely offset by higher drawdowns in Texas and some other states that received evacuees. The Deficit Reduction Act provides additional federal funds to help cover state expenditures for certain Katrina-related Medicaid costs.
[8] For example, see V. Smith, et al., “Medicaid Budgets, Spending and Policy Initiatives in State Fiscal Years 2005 and 2006,” Kaiser Commission on Medicaid and the Uninsured, Oct. 2005.
[9] Jack Hadley and John Holahan, “Is Health Care Spending Higher under Medicaid or Private Insurance?” Inquiry, 40 (2003/2004): 323-42. Medicaid costs are lower, in part, because Medicaid payments to health care providers are often lower than private insurance payments.
[10] John Holahan and Arunabh Ghosh, “Understanding the Recent Growth in Medicaid Spending, 2000-2003,” Health Affairs web exclusive, January 26, 2005.
[11] Vic Miller, op cit.