Medicaid’s Continuing Crunch In a Recession: A Mid-Year Update for State FY 2010 and Preview for FY 2011

This report finds that 44 states and the District of Columbia are experiencing higher than expected program enrollment and spending for fiscal year 2010. At least 29 states say they are considering additional mid-year cuts in provider rates and program benefits.

The recession and the scheduled end on Dec. 31, 2010 of enhanced federal matching money for Medicaid that was provided through the American Recovery and Reinvestment Act of 2009 will have a significant impact on state fiscal year 2011 budgets, Medicaid directors reported.

The report augments the most recent annual Medicaid budget survey report, released in September 2009, and is based on discussions with leading Medicaid directors and a brief survey of Medicaid directors in all 50 states and the District of Columbia late in 2009.

NOTE: Updated report on fiscal years 2010 and 2011 now available.

Report (.pdf)