Funding ongoing Medicaid programs is one of the greatest challenges for states. In governors’ proposed budgets for fiscal 2012, cost containment in Medicaid is a dominant theme. Medicaid spending is estimated at $354 billion in fiscal 2010, according to NASBO’s 2009 State Expenditure Report. As a result, Medicaid surpassed elementary and secondary education as the largest component of total state spending for the first time since 2006 based on estimated fi scal 2010 spending data. Based on feedback from various budget officers, there are still significant opportunities to save money and contain costs within the Medicaid budget. NASBO will continue to monitor and report on cost containment ideas in Medicaid and other health care spending.
Medicaid Cost Containment: Recent Proposals and Trends