Waiting for Economic Recovery, Poised for Health Care Reform: A Mid-Year Update for FY 2011 – Looking Forward to FY 2012
This report, based on structured discussions in November and December 2010 with leading Medicaid directors, augments the findings from the most recent comprehensive 50-state Medicaid budget survey to provide a mid-year 2011 update on state Medicaid issues.
As they prepare their fiscal 2012 budgets, many states, some under new gubernatorial and legislative leadership, continue to cope with lingering effects of the worst recession in decades and are facing budget shortfalls, with revenues remaining below pre-recession levels half-way through FY 2011. Medicaid enrollment is rising at a slower but still high rate compared to that in 2010. At the same time, enhanced federal Medicaid matching funds from the American Recovery and Reinvestment Act (ARRA) are set to expire on June 30, 2011, and states are moving forward with implementation of the new health reform law, which calls for a significant expansion of Medicaid.