Medicaid spending now represents biggest portion of total state spending, study finds

Medicaid spending increased 20% in fiscal 2012, representing the single largest portion of total state spending. This, combined with federally mandated Medicaid eligibility expansions, puts state budgets in a tight spot, a new national study reveals.

The American Health Care Association has said the study, conducted by the National Governors Association and the National Association of State Budget Officers, reinforces their view that cutting Medicaid provider assessments is a bad idea.

The organization vehemently opposes a Republican proposal to slash Medicaid provider assessments to offset subsidies to the Stafford student loan program. Medicaid, which is run jointly by federal and state governments, pays for the vast majority of nursing home care.

“I can't think of a clearer sign to lawmakers in Washington that reducing Medicaid provider assessments is the wrong way to go during these uncertain times,” AHCA President and CEO Mark Parkinson said in a statement. “There's no question these provider assessments yield a direct benefit to state Medicaid programs, and more importantly, the seniors we serve in our centers.”