Rehab

Healthcare costs continue to burden states

Rehab Regs, January 27, 2005

Despite the gradual improvement in the nation's economy, states that are increasingly burdened by rising healthcare and Medicaid costs continue to experience only moderate recovery, according to PT Bulletin Online. In a recent report titled The Fiscal Survey of States and released by the National Governor's Association and the National Association of Budget Officers, the groups found that current revenue collections are narrowly exceeding budgeted estimates in nearly all states in fiscal year 2004. However, state spending pressures, specifically costs associated with healthcare, continue to grow, reported the Bulletin. During fiscal year 2005, Medicaid is estimated to grow as high as 12.1% due in part to expiring federal fiscal relief. Long-term growth of Medicaid is also expected to grow at a rate of 8% to 9%, well above expected state revenue growth, according to the study.

Most Popular

Related Articles