Medicaid enrollment numbers declined for the first time in nearly a decade, according to a recent survey released 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 fiscal year 2007, which was primarily driven by two factors. For one, the states reported that new documentation requirements were causing significant delays in processing applications, affecting mostly individuals who are already eligible for the program. State officials also cited a good economy and lower unemployment numbers for reducing enrollment. After an all-time low for Medicaid spending growth in the 2006 fiscal year, 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 people who were eligible for both Medicaid and Medicare. States expect enrollment and spending to increase in fiscal year 2008 as they move forward with program enhancements.
The budget survey of state officials, conducted by KCMU and Health Management Associates for the seventh consecutive year, found that this year, more states were pursuing policies to improve their programs and remove restrictions put in place during poor economic conditions. With the nation’s uninsured population continuing to grow, 42 states report efforts to expand coverage to their uninsured population using Medicaid as a financing vehicle for coverage efforts. Much of this work, however, will depend on the outcome of the federal debate on the reauthorization of the State Children’s Health Insurance Program (SCHIP) in light of President George W. Bush’s veto.