Falling Behind in NC

Falling Behind in North Carolina: Medical Assistance

Sources: NC DHHS Division of Medical Assistance: NC OSBM Post-Legislative Summary Reports; NC House Budget Subcommittee on Health and Human Services, FY11-13 Budget Recommendations

State spending on medical assistance for children and disabled and elderly individuals has trailed far behind the growth in individuals who have become eligible for Medicaid services.More than 280,000 people became eligible for this assistance during the course of the Great Recession, partly due to difficult economic circumstances. Although the Federal government offered a richer “match” for states struggling with record budget deficits in FY10 and FY11, growth in State outlay for Medicaid services barely kept pace with inflation, let alone the rapidly rising cost of care.

Despite the 23% increase in Medicaid eligible individuals over the course of the Great Recession, the House proposal would only increase the Medical Assistance budget by $58 million in absolute dollars (not adjusted for inflation) over FY08 levels.

 

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