Enrollment in Medicaid declined for the first time in nearly a decade, according to a new 50-state survey released Oct. 10 by the Kaiser Family Foundation’s Commission on Medicaid and the Uninsured. But faced with an improving economy, 42 states expect to expand coverage to the uninsured in the next year.
The survey reports a 0.5 percent enrollment decline in FY07 driven primarily by two factors. States reported that the new documentation requirements were causing significant delays in processing applications, affecting mostly individuals already eligible for the program. State officials also cited the good economy and lower unemployment for reducing enrollment. After an all-time low for Medicaid spending growth in FY06, Medicaid spending continued to grow slowly by 2.9 percent in 2007 due largely to the decline in enrollment and the continued transition of prescription drug costs for dual eligibles from Medicaid to Medicare. States expect enrollment and spending to increase in FY08 as they move forward with program enhancements. Many of these efforts, however, will depend on the outcome of the federal debate on the reauthorization of the State Children’s Health Insurance Program in light of the president’s veto. Access the report.
