Revenue shortfalls force states to take hard look at Medicaid

Faced with falling tax revenues, states across the country are taking a close look at Medicaid as a potential area for cost savings (Source: “Medicaid bears brunt of states' budget crunch,” Christian Science Monitor, Aug. 15, 2008).

In California and New York, for example, proposed changes to Medicaid could affect eligibility for hundreds of thousands of people and decrease funding to providers. Other states are considering increasing fees or cutting funds for charity care in hospitals.

"Medicaid is very much in jeopardy," says Iris Lav, deputy director at the Center on Budget and Policy Priorities in Washington.