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California Spending

California ranked among the lowest in the nation for per-capita health spending in 2009. Still, the total was $230 billion. A new addendum to Health Care Costs 101 breaks it down.

The Picture of Health

CHCF launches a data design challenge to promote stimulating visuals that bring to life the story of rising health care costs. Submissions are due May 16, 2012.

Thursday, September 24, 2009

States Worry About Loss of Stimulus Funds for Medicaid

State officials are concerned over how they will fund Medicaid programs after federal stimulus funds allocated for the program expire in January 2011, according to a new Government Accountability Office study, the Wall Street Journal reports.

About $90 billion of the $787 billion stimulus is allocated for additional funding of state Medicaid programs.

GAO reports that states are using those funds to cover increased caseloads and maintain current services, eligibility requirements and provider payment rates.

Some states have used the money to free up other parts of their budget that would otherwise have been diverted to Medicaid. However, state leaders are now questioning "the longer term sustainability of their Medicaid programs" after the stimulus money runs out, according to GAO (Radnofsky, Wall Street Journal, 9/23).

Reader Comments:
  • 2
  • 09/27/2009
  • Herbert Smith

Regarding "handouts", the federal government is responsible for this great recession and it should compensate the states for the budgetary harm that resulted. It's federal government's failed regulatory, monetary, fiscal, and trade policies that brought on this terrible a recession. Not only is this "handout" some compensation to the state governments for the harm done to them, but it's also the medicine necessary to keep the economy from worse ills.

  • 1
  • 09/25/2009
  • James Roache

That's the problem with "handouts". In this case the state should have been looking to actually spend within their budget (fiscal responsibility) but got a a two year reprive from Obama's short-sited giveaways.

California Legislature, WAKE UP !! Spend within your budget, cut services and enrollments where you have to and DO YOUR JOB OR GET OUT !!!



Readers are invited to send feedback to: chl@chcf.org

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