June 11, 2008
Medicaid spending soars over decade
Number of participants in state increased only slightly in last decade
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West Virginia's spending on Medicaid health care for the poor and disabled has nearly doubled during the past decade, while the number of state Medicaid recipients has remained about the same, according to a recent study.

But the report, by the West Virginia Center on Budget and Policy, also found that Medicaid's growth hasn't outpaced overall health-care spending in the state.

"People think Medicaid spending is out of control, and that's not the case," said Ted Boettner, the center's executive director. "While Medicaid funding has increased, spending as a whole, in terms of its percentage of total state spending, has actually decreased a little bit."

About 20 percent of West Virginia's population - 390,000 people - received Medicaid benefits last year. Almost half of those were children.

The Center on Budget and Policy expects to release three additional reports on Medicaid later this year and early next year.

The current report found that West Virginia Medicaid spending increased from $335 million in 1996 to $651 million last year. When combined with federal funding, which accounts for 75 percent of total Medicaid dollars, more than $2.2 billion was spent on the health-insurance program in 2007.

During the same period, West Virginia's Medicaid enrollment increased only slightly from about 350,000 people in 1997 to 392,000 last year.

However, Medicaid spending made up 10 percent of total state spending last year, down from 10.5 percent in 1997.

"$2.2 billion is a lot of money," said Shannon Landrum, spokeswoman for the state Medicaid office. "We're committed to looking at how the money is spent rather than spending more. This involves our department's philosophy of providing the right care, at the right place, at the right time."

West Virginia also spends more per Medicaid recipient - $6,285 - than any bordering state. By contrast, Kentucky spends $4,964 per enrollee, and Maryland and Ohio spend about $5,800 per Medicaid recipient.

Boettner said West Virginia spends more than surrounding states because it has the highest percentage of Medicaid recipients with disabilities.

"These numbers are no surprise because West Virginia has the oldest, poorest and least-educated population of the surrounding states," he said.

West Virginia also has the highest percentage of its overall population enrolled in Medicaid among the neighboring states.

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Posted By: Arggh (10:50am 06-11-2008)
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"While Medicaid funding has increased, spending as a whole... has actually decreased a little bit."

West Virginia Medicaid spending increased from $335 million in 1996 to $651 million last year.

Funding and spending are NOT the same!

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