Medicaid Largest Source of Federal

Annual NGA Fiscal Survey of States Fails to Examine Benefit of

Yesterday, the National Governor's Association (NGA) and the National Association of State Budget Officers (NASBO) released their annual Fiscal Survey of States. Among the survey findings highlighted by the NGA is that state spending for Medicaid, including federal funds, has surpassed state spending on primary and secondary education. However, the same survey examined state general fund expenditures and found that states spent more than twice as much on education than they did on Medicaid.

"When analyzing the NGA survey's findings on Medicaid, it is important to count the economic benefit that Medicaid holds for states," said Families USA Executive Director, Ron Pollack. "A recent Families USA study found that, on average, every $1 million invested in Medicaid by states generates nearly 34 jobs, $1.2 million in wages, and $3.3 million in business activity."

The federal government pays, on average, 57 percent of the cost of Medicaid. The program is the largest source of federal funds for states, providing 43 percent of all federal funding to states. Although health care costs in general continue to escalate, both the NGA and NASBO admit that Medicaid has held cost increases down better than the private health insurance market.

Medicaid provides critical health and long-term care services to more than 51 million seniors, people with disabilities, children, and working families. Without Medicaid, there would be millions more uninsured people who have no other source of health care coverage. And states would lose out on billions of dollars of assistance from the federal government to help pay for health care.

SPOKESPEOPLE AVAILABLE

Families USA Executive Director Ron Pollack and Deputy Director of Health Policy Rachel Klein are available for comments concerning the annual Fiscal Survey of States released yesterday by the National Governor's Association (NGA) and the National Association of State Budget Officers (NASBO).

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Families USA is the national organization for health care consumers. It is nonprofit and nonpartisan and advocates for high-quality, affordable health care for all Americans.

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202-628-3030 · Email: info@familiesusa.org · www.familiesusa.org