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New Study Brings to Light Concerns on Medicaid Spending in Maryland

Published on January 9th, 2008
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ROCKVILLE, MD - Contrary to the main goal of a special session by the Maryland General Assembly to discuss the state's deficit, the Medicaid program was increased. This, according to a new study by the Maryland Public Policy Institute, is a growing fiscal concern that will continue to increase unless broad reform measures are pursued.

In "A Growing Fiscal Concern: Medicaid Spending in Maryland," Maryland Public Policy Institute senior fellow Marc Kilmer finds that with Maryland's possibility of a slowing economy and increasing budget deficit, steps should be taken to find alternatives to Medicaid expansion.

Kilmer identifies that Medicaid spending continues to grow in both good and bad economic times. "As noted, Medicaid spending declined in only two of the 15 years examined," writes Kilmer.

Small reforms have been made but fail. Kilmer explains, "Until true reform efforts can be made that include the elderly and people with disabilities [high-cost recipients], Maryland cannot begin to control or even accurately predict the state's Medicaid spending." Kilmer ultimately calls for a focus on broad reforms instead of the ineffective minor reforms.

"Policymakers should be trying to move people off these programs and onto private insurance. This approach will not only save the state money, but will also lead to better health care for the people who would have been on Medicaid," Kilmer adds.

Kilmer concludes that there are steps available that can be taken in order to make health care more affordable without infringing on the General Fund. Without new reforms Medicaid spending will only continue to increase - straining the state budget.

The Maryland Public Policy Institute is a 501 (C) (3) nonpartisan public policy research and education organization that focuses on Maryland public policy issues.

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Available in Adobe Acrobat PDF format.

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A Growing Fiscal Concern: Medicaid Spending In Maryland