Medicaid, State Finances, and the Bottom Line for Businesses

Louis F Rossiter and Randy F Neice

Business Economics, 2006, vol. 41, issue 3, 49-54

Abstract: Current Medicaid expenditures account for about nine percent of the federal budget and almost a quarter of state budgets and are growing rapidly. State Medicaid budgets are especially vulnerable to recession since states cannot incur large and sustained fiscal deficits. Without change, Medicaid burdens will cause state finances to be diverted from infrastructure and education, with negative effects on the costs and productivity of business. Also affecting business are the state governments experimenting with policies that shift Medicaid burdens to private employers. Simultaneously, the states are initiating efforts to ease Medicaid's relentless cost increases and address its long-run problems.Business Economics (2006) 41, 49–54; doi:10.2145/20060306

Date: 2006
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