New Mexico’s Medicaid costs will hit $1 billion in 2019, with the state on the hook for paying an additional $63 million, according to local reports.
The cause is the federal government reducing reimbursements for beneficiaries, rather than increased number of people receiving services. While the state’s Medicaid enrollment has declined, the federal government is dropping its contribution to 90% in the next fiscal year, down 3%, the Santa Fe New Mexican reported.
Enrollment is expected to stay reasonably flat in the state, with 848,000 citizens set to be on the rolls by June 2020.
Additional costs come from cuts to financial support for children’s health insurance. Gov. Susana Martinez (R) is proposing new premiums and copays for some New Mexicans enrolled in Medicaid to help offset the costs.
