Increased Medicaid spending a main driver of state spending nationally

By: Emily Makings
12:00 am
December 4, 2015

Last month the National Association of State Budget Officers (NASBO) released its annual State Expenditure Report, including actual data for fiscal years 2013 and 2014 and estimated numbers for 2015. According to the report,

Total state spending increased in fiscal 2015 at its fastest rate since 1992 due to a combination of modest growth in states' own fund sources, and a rapid increase in federal funds to states.

That rapid federal increase occurred because states "received significantly more federal Medicaid dollars as part of the first full-year of Medicaid expansion under the Affordable Care Act." Indeed, "Federal Medicaid funds to states increased 22.5 percent in fiscal 2015, while all other federal funds to states only grew 2.0 percent." Additionally, "Medicaid grew faster than all other program areas in both fiscal 2014 and fiscal 2015."

NASBO notes,

Looking forward, it is likely that spending from states' own fund sources will continue its recent pattern of modest growth as revenue collections increase, while the increase in federal funds to states will likely slow as the growth in Medicaid enrollment is expected to decelerate in future years after states have implemented the Affordable Care Act.

(This jibes with the estimates of Washington's most recent caseload forecast.)

The table below shows some of the data from the report, comparing Washington to all states. The total spending numbers include state and federal funds.

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Categories: Budget , Categories , Health.