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Medicaid, State Finances, and the Bottom Line for Businesses

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  • Louis F Rossiter
  • Randy F Neice

Abstract

Current Medicaid expenditures account for about nine percent of the federal budget and almost a quarter of state budgets and are growing rapidly. State Medicaid budgets are especially vulnerable to recession since states cannot incur large and sustained fiscal deficits. Without change, Medicaid burdens will cause state finances to be diverted from infrastructure and education, with negative effects on the costs and productivity of business. Also affecting business are the state governments experimenting with policies that shift Medicaid burdens to private employers. Simultaneously, the states are initiating efforts to ease Medicaid's relentless cost increases and address its long-run problems.Business Economics (2006) 41, 49–54; doi:10.2145/20060306

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  • Louis F Rossiter & Randy F Neice, 2006. "Medicaid, State Finances, and the Bottom Line for Businesses," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 41(3), pages 49-54, July.
    • Handle: RePEc:pal:buseco:v:41:y:2006:i:3:p:49-54
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    Cited by:

    1. Datta, Anusua & Vandegrift, Donald, 2011. "Effects of welfare reform and the state children’s health insurance program on medicaid and total health expenditures," MPRA Paper 36486, University Library of Munich, Germany.

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