Report: Medicaid enrollments, costs begin to stabilize

Associated Press

States are seeing more stability in their Medicaid programs after experiencing a surge in enrollment and costs associated with the Affordable Care Act, suggesting that one of the major pillars of former President Barack Obama's health overhaul may be nearing its peak.

At the same time, they are experiencing a high level of uncertainty as Republicans in Congress continue to advocate for a major overhaul of a program that provides health insurance to tens of millions of lower-income and disabled Americans.

Today's report by the Kaiser Family Foundation found Medicaid enrollments in the states slowed considerably to an increase of just 2.7 percent in fiscal year 2017. By comparison, states reported a 13.9 percent increase in enrollment during fiscal year 2015 following implementation of former President Barack Obama's health care law.

The Affordable Care Act allowed states to expand their Medicaid programs to include more lower-income adults without children. Regular Medicaid roles also increased because of the heightened publicity associated with the law, commonly referred to as Obamacare.

State spending on Medicaid, the second largest budget item behind education for most states, grew a modest 3.9 percent in the most recent period. That compares to the 10.5 percent increase in spending states saw in fiscal year 2015.

Rising costs for prescription drugs and long-term care services, along with increases in payment rates to providers, account for most of the spending growth, the researchers said.