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Friday, July 08, 2005
High Medicaid Costs Loom for State Budgets
According to a new report issued by the National Governor's Association, many state budgets are near historical levels of growth. Only five states' revenues for fiscal year 2005 are below projections, while 42 states generated more tax revenue than they planned. Despite this good news, the NGA does caution in their report that Medicaid costs for long-term care and other services still threatens budgetary stability. NGA Executive Director Raymond Sheppach stated, "The continued rise in health care costs, spurred by Medicaid, continues to throw a wrench in the recovery of many states." Medicaid, in fact, has now surpassed education as the greatest overall expense to states.
Posted by Becky Lewis
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