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

Share this article:


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.”

Click here to read the NGA-NASBO report, “The Fiscal Survey of States.”


Share this article:

More in News

CMS expands therapy payment research

The government is expanding its research into alternative therapy payments, to consider more holistic changes to the way Medicare reimburses skilled nursing facilities, the Centers for Medicare & Medicaid Services announced Tuesday.

CDC tightens Ebola guidelines for healthcare workers

The Centers for Disease Control and Prevention has issued more stringent guidelines for how healthcare workers should interact with Ebola patients, following an outcry from nurses and other professionals.

Nonprofit providers face alarming market forces, must rally, LeadingAge chairman says

Nonprofit providers face alarming market forces, must rally, ...

Nonprofit long-term care providers must work together to address alarming trends, or their market share could plummet and the sector as a whole could falter, LeadingAge Chairman David Gehm told ...