States are leading the charge for U.S. healthcare reform and will likely continue to play an instrumental role, according to a new Standard & Poor’s (S&P) Ratings Services report published Oct. 17. Most states have plans to expand their healthcare coverage in their FY08 budget, and the costs to provide that coverage are increasing at an exponential rate as the U.S. population ages.
“How states manage healthcare challenges will play a role in future budget balance and financial flexibility, which are important considerations in our credit review process,” said S&P credit analyst Robin Prunty. “Most state healthcare initiatives have been incremental, aimed at expanding coverage and reducing overall healthcare costs. While there have been a few notable exceptions to the incremental approach, particularly in Massachusetts, Vermont, and Maine, we haven’t viewed any of these programs as a significant credit concern in their current form.”
The report, Top 10 Reasons Why States Are Central to Health Care Reform Efforts, notes that states will stay involved and focused in part because they share in funding Medicaid, which makes up one of the biggest components of state spending.
The report is available to subscribers of RatingsDirect, the web-based source for S&P credit ratings, research, and risk analysis. For more information, call 212-438-9823.
