News on Medicaid and State Budgets: May and June 2003 Update

Publication Date: September 2003

Publisher: Henry J. Kaiser Family Foundation

Author(s):

Research Area: Health

Type: Report

Coverage: United States

Abstract:

This update summarizes recent news from press reports published during the months of May and June 2003 as well as information reported by the National Conference of State Legislature’s health policy tracking service during these two months. It highlights recent actions by governors and state legislators to reduce Medicaid spending growth.

The information in this report has not been verified by the states, and in some cases the actions reported are not final. States continue to struggle with difficult budget situations driven in large part to the decline in state revenues. At the same time, the majority of states are continuing to develop cost control strategies to reduce Medicaid spending growth. In June, states received a $10 billion dollar fiscal relief package, designed to reduce the cost of Medicaid to states in 2003 and 2004 by temporarily raising the federal matching rate for Medicaid. The legislation also provides an additional $10 billion dollars ($5 billion in FY 2003 and another $5 billion in FY 2004) that states can use for broader budgetary relief.