Pew Center on the States: Special Report on Medicaid 2006

In July 2005, the Medicaid program turned 40. The Pew Center on the States: Special Report on Medicaid, highlights the states' efforts to provide safety net services for nearly 58 million Americans while controlling program costs. 

Overall Medicaid spending in 2005 totaled $329 billion. The federal government contributed 57% of the funding; the states contributed the remaining 43%. Medicaid represents 21% of state budgets. The Congressional Budget Office projects that Medicaid spending will increase by 7.7% annually for the next decade. The report presents examples of state experiences in balancing Medicaid costs and services. There are nine sections to the report. Key findings: 

• Dollars spent continue to rise, even if states make program cuts
  
  
• Approaches favored by leaders such as co-payments may discourage participants from seeking care before a problem becomes acute
  
  
• Prescription drug programs have successfully cut the spending growth rate on medications
  
  
• E-health technology holds promise to greatly reduce costs and improve care, but the up-front costs discourage adoption
  
  
• Effective managed care improves quality of care and cuts costs