More warning numbers are coming in with state spending on Medicaid. Medicaid will be the budget crusher for most states. No realistic budget planning was done for this program when Obamacare lured states in taking the bait for federal dollars to expand the program.
Here’s more from Kentucky, who already has budget problems with pensions:
It has been 10 years since the Kentucky Chamber of Commerce released the original Leaky Bucket report that found three major leaks in state’s spending — corrections, Medicaid and public employee benefits — all of which were consuming tax dollars at a rate that was growing faster than the overall state budget. These leaks accounted for more than half of all growth in the budget from 2000 to 2010, and money was being allocated to these areas at a much higher rate than education — the key investment we should be making for our state’s future.
Unfortunately, that is not the case. With the opioid epidemic plaguing our state and the resulting growth in the prison population, escalating costs associated with Medicaid, and continuing challenges with the pension systems, Kentucky is still struggling to fix the leaks.
▪ Medicaid spending grew 25.6 percent compared to 16.5 percent from FY 2012 to 2016.