USA Today Examines Effect of Increased State Revenue on Medicaid, Other Programs

Main Category: Medicare / Medicaid / SCHIP
Article Date: 31 May 2005 - 11:00 PDT

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USA Today on Thursday examined how a recent "rush of money into state budgets is reshaping" state spending nationwide, although many states "continue to face long-term financial pressure from the soaring cost of Medicaid." In a USA Today survey of 15 states that account for 46% of the U.S. population, seven states reported that tax revenue for the current fiscal year has increased by more than 10% from the previous fiscal year. Some states have used the additional funds to maintain coverage for Medicaid beneficiaries. Tennessee Gov. Phil Bredesen (D) has agreed to maintain coverage for 97,000 beneficiaries that he had planned to eliminate from Medicaid, and Connecticut Gov. M. Jodi Rell (R) has abandoned a plan to eliminate coverage for 13,000 beneficiaries. However, Missouri -- which at 3.9% had the smallest rate of increase in tax revenue among the 15 states surveyed -- on July 1 will eliminate coverage for 90,000 Medicaid beneficiaries to save an estimated $250 million (Cauchon, USA Today, 5/26).

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