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

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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