RD151 - Monthly Report on Medicaid Expenditures for (June 2007)


Executive Summary:
Medicaid expenditures in FY 2007 were $4.70 billion, an increase of 6.0 percent over the $4.43 billion spent last year. Final funding, based on the November 2006 Official Medicaid forecast and budget amendments enacted during the 2006 and 2007 General Assembly sessions in addition to administrative transfers, provided for 8.6 percent annual growth. At the fund level, Medicaid general fund expenditures experienced 8.4 percent annual growth rate. DMAS’ final appropriation provided for 11.4 percent annual general fund growth.

The growth in expenditures reflects the annual rate increases built into health care facility and nursing home rates, increased utilization of community mental health services, as well as spending initiatives enacted in the 2006 Appropriation Act increasing the number of slots in the MR and DD waivers and providing reimbursement increases for hospitals, nursing facilities, physicians, and providers of adult day care and skilled nursing services.

While there was significant overall growth in the Medicaid program, actual expenditures were $112 million (2.3 percent) lower than funded. The lower than projected growth is due largely to reductions in the average monthly Medicaid enrollment resulting from the federal citizenship and identification (C&I) requirements implemented July 1, 2006. The following graph illustrates monthly Medicaid enrollment with respect to the development of the FY 2007 Medicaid expenditure projections.