Medicaid Out of Control? Who Would Have Thought?
Wednesday, May 21st, 2008In a news report yesterday on the state pork capital budget, there was this interesting tidbit:
State Budget Director J. Pari Sabety told legislators yesterday that the budget needs another $344 million ($122 million in state funds) to cover increased Medicaid costs because 66,000 more people than expected are using the state-federal health-insurance program for the poor and elderly.
I hate to say “I told you so,” but:
Expanding Medicaid can lead to large increases in Medicaid spending when states can least afford it — during recessions. Ohio saw this earlier this decade when Medicaid spending increased dramatically during the recent recession. Spending grew at 11 percent annually during 2001 and 2004, squeezing other budget priorities at a time when the state was seeing reduced revenue. Expanding Medicaid now will only repeat this cycle during the next recession.



