In a new report, findings concluded that whether or not states decided to expand Medicaid, states are in the midst of a fiscal crisis relating to rising healthcare costs and government pension obligations. [1]
Medicaid currently pays for the bulk of care in skilled nursing facilities. With increasing Medicaid enrollments and rising healthcare costs, Medicaid cost growth will surpass revenue growth by a wide margin.
The authors point out that a larger problem than healthcare is unfunded state government pension obligations that could end up totaling as much as $3 trillion. [2]
In addition, the authors said that states cannot control Medicaid spending without assistance of the federal government.
“Reaching agreement on how to control federal and state costs, while assuring the basic goals of enlarging and improving healthcare for persons who cannot now afford private insurance, is a major political and economic challenge that should be addressed sooner rather than later,” the authors stated.
The State Budget Crisis Task Force panel was organized by Former Federal Reserve Chairman Paul Volcker and former New York Lt. Gov. Richard Ravitch (D). The task force focused on six states’ budgets: California, Illinois, New Jersey, New York, Texas and Virginia.
How dire do you think the state fiscal crisis is, and how much do you think it will affect skilled nursing facilities in relation to Medicaid enrollment?
