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Medicaid Budget Proposals Would Shift Costs to States and Be Likely to Cause Reductions in Health Coverage
Administration's Proposal Also Implies Cap on Federal Funding
Leighton  Ku, Victoria Wachino, Andy Schneider, Center on Budget and Policy Priorities, 2/18/2005

These reductions would have significant implications for the program’s ability to provide health care coverage to low-income uninsured Americans and for states’ ability to finance their share of program costs. Many states are struggling to fund their share of Medicaid costs. A number of states are responding by instituting changes that terminate coverage for groups of low-income beneficiaries (generally causing most such beneficiaries to become uninsured) or deny coverage for certain services that some beneficiaries — in some cases, those who are the sickest and require the most prescriptions or longest hospital stays — may need. Proposals that would shrink the federal government’s contribution to state Medicaid costs without reducing Medicaid costs themselves would shift financial burdens to states.

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