Arizona a Prime Example of Financial Ruin by Medicaid
"In 1987, ... just over 10 percent of the state's budget was dedicated to Medicare expenditures. By 1992 that percentage was 17.8, and by 2006 it was 22.2."
http://www.heartland.org/publications/health%20care/article.html?articleid=23723
Written By: Matthew Smith
Published In: Health Care News
Publisher: The Heartland Institute
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"Medicaid is the primary culprit behind state and local governments' bleak financial outlook, according to an American Enterprise Institute (AEI) review of data recently released by the federal Government Accountability Office (GAO).
The financial security of local governments will "rapidly deteriorate in less than a decade," said Michael S. Greve, John G. Searle Scholar at AEI and coauthor of "As Arizona Goes, So Goes the Nation: How Medicaid Ruins the States' Fiscal Health."
Tripling of Costs
According to the report, released in mid-July, Arizona is facing a general fund budget shortfall of more than $1.3 billion in its $10.9 billion budget--a predicament largely caused by the state's expansion of its Medicaid programs, which have grown dramatically as a share of the state's overall expenditures.
In 1987, the report notes, just over 10 percent of the state's budget was dedicated to Medicare expenditures. By 1992 that percentage was 17.8, and by 2006 it was 22.2.
In fiscal year 2000, Arizona spent $463 million on Medicaid, and in FY 2009 that figure is projected to be $1.5 billion. That's "a threefold increase in less than a decade," the report notes.
Speeding Ticket Money
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