Medicaid Enrollment Declines, but Only Slightly

WASHINGTON–Medicaid enrollment declined for the first time in
nearly a decade, but only by a half-percent, according to a survey
released last week by the Kaiser Family Foundation’s Commission on
Medicaid and the Uninsured.

However, state Medicare directors in 42 states said they
expected to expand the coverage to the uninsured next year.

“In hard economic times, states are under incredible pressure to
restrain Medicaid spending growth, but when fiscal conditions
improve, states look to restore some cuts and really focus on
improvements. States are turning to Medicaid to address the rising
number of uninsured to help fill in the gaps for low-income
families,” explained Diane Rowland, executive vice president of the
Kaiser Family Foundation and executive director of KCMU.

This fiscal year’s decline in enrollment was driven by two
factors, according to KCMU. First, states reported significant
delays in processing applications because of new documentation
requirements. This affected individuals already eligible for the
program, they said. Second, states credited a good economy and
lower unemployment for reducing enrollment.

Conversely, according to the survey, Medicaid spending grew by
2.9 percent, propelled by the decline in enrollment and the
continued transition of the prescription drug costs for dual
eligibles from Medicaid to Medicare. The survey said states expect
enrollment and spending to increase in fiscal year 2008 as they
move forward with program enhancements.