Rhode Island first state to push for Medicaid spending cap

An unprecedented attempt by Rhode Island officials to cap the state’s Medicaid spending is one that likely will be watched closely by state officials around the country (Source: “R.I. Seeks Limits on Medicaid Spending,” Washington Post, Sept. 5, 2008).

At issue is a Rhode Island request to the Centers for Medicare & Medicaid Services for federal Medicaid spending to the state to be increased annually by a set 9.2 percent (6.8 percent to account for annual health-care costs increases and 2.3 percent  for added enrollment), while the state contribution would be capped next year at $754 million, or 23 percent of the state’s general fund budget.

"The Medicaid waiver would allow the state to implement reforms to protect the long-term viability of the program as well as the individuals it services," said Gov. Donald Carcieri.

The measure is being protested by Congressional Democrats and some advocacy groups.

"The key issue is severing the relationship between financing and health-care needs," said Joan C. Alker, deputy executive director of Georgetown University's Center for Children and Families. "It really is a risky and radical step that I don't think the state or the federal government should be taking."