Last week, the Kaiser Family Foundation released a 50 state survey on Medicaid, noting that although states plan to increase total spending on Medicaid by 2 percent for FY 2012, the state specific share is expected to increase by 29 percent, due to the withdrawal of federal stimulus funds. The two percent increase in spending is primarily the result of a slow national economic recovery as well as other cost containment measures adopted in many states over the last decade. However, respondents in more than half of all states still reported a 50-50 chance of a Medicaid budget shortfall. Additionally, according to the survey, states are taking a broad range of approaches to quality improvement, including:
expanding the use of managed care;
adopting initiatives to coordinate care for seniors and adults with disabilities who are eligible for both Medicaid and Medicare;
offering more elders the choice of receiving services in their homes and communities, rather than in nursing homes; and
implementing health information technology initiatives such as improved claims management systems, increased use of electronic health records, and streamlined enrollment procedures.
Overall, the most commonly reported cost-cutting strategy was reducing fees paid to hospitals and other health care providers as 39 states lowered fees in 2011, and 46 reported plans to do so in 2012. States also reduced services, such as dental, providing medical supplies and durable medical equipment and personal care. Also, many states made significant changes in their pharmacy programs, including such changes as limiting the number of drugs and the number of refills the program will pay for and reductions in the price paid for certain specialty drugs. States also introduced higher co-payments for beneficiaries as five states raised co-payments in fiscal year 2011, and 14 states did so in fiscal year 2012. Regarding Medicaid enrollment, the survey reported a 5.5 percent average growth rate in 2011 and a 4.1 percent growth expectation for 2012. The survey was conducted in July and August.

Link: Kaiser Report