The factors contributing to the large spike in the Fiscal Year 2010 Medicaid Budget, and the overall impact on Alaska’s budget, were revealed in a recent study issued last week. Major findings from the report titled, “Analysis: Alaska Medicaid Trends, FY2010-FY2011,” include:

  • There has been a substantial increase in the number of children enrolled in the Medicaid program over the last year, over 11,000 additional children enrolled.
  • In addition, there was a substantial increase in the use of the Food Stamp program.
  • The cause of the increase has been attributed to two major factors: an increase in statewide unemployment and an increase in Alaska’s population.
  • Most recent monthly trends in Medicaid spending show a slowing trend.
  • The overall impact on the FY2010 budget requires an additional $36.8 million from state general funds, and an additional $37.7 million in federal matching funds.
  • The recommended FY2011 Medicaid Budget requires $441.6 million from state general funds and an overall total of $1,318.2 million (from a combination of fund sources).

The findings were presented during a busy House Finance Committee meeting discussing HB 300 Approp: Operating Budget/Loans/Funds and HB 302 Approp: Mental Health Budget. The study was requested by Representative Mike Hawker and the House Finance Committee last year. The purpose of the study was to review Medicaid expenditures and projections (which are expected to spike by 17 percent in FY 2010), and to assist in the determination of the cause of the increase and the overall impact on the budget. The analysis and report were completed by Janet Clarke Consulting.

In-depth findings, including tables on Medicaid spending and enrollment trends, are available in the full report.

About ACPP_archive

formerly Alaska Center for Public Policy

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