Medicaid to Beat Education as Top Cost for States

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Medicaid to Beat Education as Top Cost for States

Tue Oct 12, 4:24 PM ET Health - Reuters

By

WASHINGTON (Reuters) - Medicaid will become the No. 1 cost facing U.S. state

governments in 2004, beating out elementary and secondary education for the

first time ever, according to a report from state budget officers on

Tuesday.

The cost of providing health services under the federal-state program for

the poor and disabled climbed 8 percent in fiscal 2003 and came within a

hair of overtaking elementary and secondary education as the top

expenditure.

Medicaid accounted for 21.4 percent of all state spending while elementary

and secondary education took 21.7 percent of state spending in 2003,

according to the National Association of State Budget Officers' annual State

Expenditure Report.

In 1987, the program accounted for only 10.2 percent of total state spending

compared with the 22.8 percent of spending allocated to education, the

budget officers' group said.

When final results are tallied for fiscal 2004, the budget officers group

expects Medicaid to top states' list of expenses, said Pattison,

executive director of the group.

" It's amazing, " Pattison said. " Based on the projections for the (fiscal

year) 2004 data, we would expect that it has surpassed the (kindergarten

through grade 12) figure. "

Fiscal 2004 ended June 30 for most states. The expenditures data lags by

about a year.

Scheppach, executive director of the National Governors Association,

said federal requirements mandating Medicaid coverage would force states to

cut back on other services.

" Since Medicaid is a federal entitlement and education is discretionary,

Medicaid will trump education going forward, " Scheppach said.

State budget and Medicaid officials, as well as health advocates, have

warned for years that growth in Medicaid costs was unsustainable. Rising

prescription drug costs, increasing enrollment and costly nursing home care

have been cited throughout the country as the program's main cost drivers.

The Kaiser Commission on Medicaid and the Uninsured last week said Medicaid

costs would continue to squeeze state governments in fiscal 2005 despite

rising revenue collections and improving economies.

[Guest guest]

http://story.news./news?tmpl=story & ncid=1417 & e=7 & u=/nm/20041012/hl_nm/e\

conomy_states_dc & sid=95832452

Medicaid to Beat Education as Top Cost for States

Tue Oct 12, 4:24 PM ET Health - Reuters

By

WASHINGTON (Reuters) - Medicaid will become the No. 1 cost facing U.S. state

governments in 2004, beating out elementary and secondary education for the

first time ever, according to a report from state budget officers on

Tuesday.

The cost of providing health services under the federal-state program for

the poor and disabled climbed 8 percent in fiscal 2003 and came within a

hair of overtaking elementary and secondary education as the top

expenditure.

Medicaid accounted for 21.4 percent of all state spending while elementary

and secondary education took 21.7 percent of state spending in 2003,

according to the National Association of State Budget Officers' annual State

Expenditure Report.

In 1987, the program accounted for only 10.2 percent of total state spending

compared with the 22.8 percent of spending allocated to education, the

budget officers' group said.

When final results are tallied for fiscal 2004, the budget officers group

expects Medicaid to top states' list of expenses, said Pattison,

executive director of the group.

" It's amazing, " Pattison said. " Based on the projections for the (fiscal

year) 2004 data, we would expect that it has surpassed the (kindergarten

through grade 12) figure. "

Fiscal 2004 ended June 30 for most states. The expenditures data lags by

about a year.

Scheppach, executive director of the National Governors Association,

said federal requirements mandating Medicaid coverage would force states to

cut back on other services.

" Since Medicaid is a federal entitlement and education is discretionary,

Medicaid will trump education going forward, " Scheppach said.

State budget and Medicaid officials, as well as health advocates, have

warned for years that growth in Medicaid costs was unsustainable. Rising

prescription drug costs, increasing enrollment and costly nursing home care

have been cited throughout the country as the program's main cost drivers.

The Kaiser Commission on Medicaid and the Uninsured last week said Medicaid

costs would continue to squeeze state governments in fiscal 2005 despite

rising revenue collections and improving economies.

[Guest guest]

http://story.news./news?tmpl=story & ncid=1417 & e=7 & u=/nm/20041012/hl_nm/e\

conomy_states_dc & sid=95832452

Medicaid to Beat Education as Top Cost for States

Tue Oct 12, 4:24 PM ET Health - Reuters

By

WASHINGTON (Reuters) - Medicaid will become the No. 1 cost facing U.S. state

governments in 2004, beating out elementary and secondary education for the

first time ever, according to a report from state budget officers on

Tuesday.

The cost of providing health services under the federal-state program for

the poor and disabled climbed 8 percent in fiscal 2003 and came within a

hair of overtaking elementary and secondary education as the top

expenditure.

Medicaid accounted for 21.4 percent of all state spending while elementary

and secondary education took 21.7 percent of state spending in 2003,

according to the National Association of State Budget Officers' annual State

Expenditure Report.

In 1987, the program accounted for only 10.2 percent of total state spending

compared with the 22.8 percent of spending allocated to education, the

budget officers' group said.

When final results are tallied for fiscal 2004, the budget officers group

expects Medicaid to top states' list of expenses, said Pattison,

executive director of the group.

" It's amazing, " Pattison said. " Based on the projections for the (fiscal

year) 2004 data, we would expect that it has surpassed the (kindergarten

through grade 12) figure. "

Fiscal 2004 ended June 30 for most states. The expenditures data lags by

about a year.

Scheppach, executive director of the National Governors Association,

said federal requirements mandating Medicaid coverage would force states to

cut back on other services.

" Since Medicaid is a federal entitlement and education is discretionary,

Medicaid will trump education going forward, " Scheppach said.

State budget and Medicaid officials, as well as health advocates, have

warned for years that growth in Medicaid costs was unsustainable. Rising

prescription drug costs, increasing enrollment and costly nursing home care

have been cited throughout the country as the program's main cost drivers.

The Kaiser Commission on Medicaid and the Uninsured last week said Medicaid

costs would continue to squeeze state governments in fiscal 2005 despite

rising revenue collections and improving economies.

[Guest guest]

http://story.news./news?tmpl=story & ncid=1417 & e=7 & u=/nm/20041012/hl_nm/e\

conomy_states_dc & sid=95832452

Medicaid to Beat Education as Top Cost for States

Tue Oct 12, 4:24 PM ET Health - Reuters

By

WASHINGTON (Reuters) - Medicaid will become the No. 1 cost facing U.S. state

governments in 2004, beating out elementary and secondary education for the

first time ever, according to a report from state budget officers on

Tuesday.

The cost of providing health services under the federal-state program for

the poor and disabled climbed 8 percent in fiscal 2003 and came within a

hair of overtaking elementary and secondary education as the top

expenditure.

Medicaid accounted for 21.4 percent of all state spending while elementary

and secondary education took 21.7 percent of state spending in 2003,

according to the National Association of State Budget Officers' annual State

Expenditure Report.

In 1987, the program accounted for only 10.2 percent of total state spending

compared with the 22.8 percent of spending allocated to education, the

budget officers' group said.

When final results are tallied for fiscal 2004, the budget officers group

expects Medicaid to top states' list of expenses, said Pattison,

executive director of the group.

" It's amazing, " Pattison said. " Based on the projections for the (fiscal

year) 2004 data, we would expect that it has surpassed the (kindergarten

through grade 12) figure. "

Fiscal 2004 ended June 30 for most states. The expenditures data lags by

about a year.

Scheppach, executive director of the National Governors Association,

said federal requirements mandating Medicaid coverage would force states to

cut back on other services.

" Since Medicaid is a federal entitlement and education is discretionary,

Medicaid will trump education going forward, " Scheppach said.

State budget and Medicaid officials, as well as health advocates, have

warned for years that growth in Medicaid costs was unsustainable. Rising

prescription drug costs, increasing enrollment and costly nursing home care

have been cited throughout the country as the program's main cost drivers.

The Kaiser Commission on Medicaid and the Uninsured last week said Medicaid

costs would continue to squeeze state governments in fiscal 2005 despite

rising revenue collections and improving economies.