Medicaid and State Budgets: From Crunch to Cliff

This fact sheet discusses the status of Medicaid and state budgets in light of the continuing recession and the federal fiscal relief provided to state Medicaid programs through the American Recovery and Reinvestment Act (ARRA). The ARRA money has proved to be critical in helping states address budget shortfalls, preserve Medicaid eligibility and soften program cuts. But ARRA funds are set to expire on Dec. 31, 2010, creating a major cliff in state financing that may prompt some states to turn to cost-saving measures such as restrictions on Medicaid eligibility. Any erosion in Medicaid could complicate health reform plans that call for expanding Medicaid in an effort to achieve broader coverage.

Fact Sheet (.pdf)

KFF Headquarters: 185 Berry St., Suite 2000, San Francisco, CA 94107 | Phone 650-854-9400
Washington Offices and Barbara Jordan Conference Center: 1330 G Street, NW, Washington, DC 20005 | Phone 202-347-5270

www.kff.org | Email Alerts: kff.org/email | facebook.com/KFF | twitter.com/kff

The independent source for health policy research, polling, and news, KFF is a nonprofit organization based in San Francisco, California.