Medicaid spending by states to rise 12.1% in fiscal 2005

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State Medicaid spending is expected to expand by 12.1% in fiscal 2005, due in part to expiring federal relief, according to the latest fiscal survey of states by two associations.

The National Governors Association and National Association of State Budget Officers also said state spending on Medicaid is predicted to rise 8% to 9% longer term, well above anticipated state revenue growth.

Shortfalls in state Medicaid budgets totaled nearly $7 billion in fiscal years 2003 and 2004, the groups reported.