‘Diane Rehm Show’ Discusses State Budget Problems, Including High Medicaid Costs

WAMU's "Diane Rehm Show," an NPR syndicated program, on Dec. 2 hosted a discussion on the factors behind state budget crises across the country, including rising Medicaid spending, and emerging coping strategies among governors and governors-elect. Guests on the program included Arkansas Gov. Mike Huckabee (R), Nicholas Johnson of the Center on Budget and Policy Priorities, John Thomason of the National Governors Association and Virginia Gov. Mark Warner (D) (Rehm, "Diane Rehm Show," WAMU, 12/2). According to an NGA report released last week, almost every state in the nation is "in fiscal crisis," a problem that could prompt many to reduce Medicaid spending. According to the report, "Fiscal Survey of the States," in the most recent fiscal year, states' coffers decreased to $14.5 billion from a peak of $48.8 billion in 2000. Medicaid and other health care costs account for 30% of states' spending, and those expenses rose 13% last year, the largest increase in a decade (Kaiser Daily Health Policy Report, 11/26). Describing the factors driving budget crises in most states, Huckabee said, "Number one it's the overall health care picture, but particularly Medicaid." Warner agreed that Medicaid is "just eating up state budgets, and the federal government plays an ever decreasing instead of increasing role in funding Medicaid." Thomason said that he expects to see "tough choices" on Medicaid eligibility levels, benefits and copayments ("Diane Rehm Show," WAMU, 12/2).