As expected, Medicaid enrollment grew by 5-10 percent in several states in the past year because of the recession. (Kaiser Network)
Sixteen of the 40 states that responded to a New York Times survey reported at least a 5 percent increase in Medicaid enrollment in the past year. States also reported an increase in State Children’s Insurance Program (SCHIP) enrollment. Consequently, states experienced a large number of people trying to enroll, swamping social services agencies. States may reduce or freeze Medicaid reimbursements to hospitals and doctors to make up for the shortfalls.
President Barack Obama and his cohorts in Congress are working on an $825 billion economic stimulus package, which would go toward more Medicaid funding for the states. Under the stimulus plan, SCHIP would be expanded and reauthorized, adding about four million more children. President George Bush twice vetoed a similar bill, citing concerns about giving coverage to children whose families could afford private insurance.