Moody’s Report: States Will Feel Pinch Of Reform’s Medicaid, Health Care Expansions

ModernHealthcare: "The Medicaid expansion under health reform is expected to strain state budgets already distressed by the recession, despite delays for new eligibility rules and federal aid, Moody's Investors Service said in a newly released report. States that see the largest gains in Medicaid enrollment under health reform will likely see the greatest financial burden, Moody's said."

Reuters: "The burdens could be even greater if the recovery from the recession that began in 2007 is slow or mild, which could leave states strapped to pay for their current responsibilities, let alone the expanded healthcare demands," according to the Moody's report." State budgets could feel the hit as soon as 2014. "At a recent Washington meeting of the National Conference of State Legislatures, state policy-makers worried that the U.S. government had not provided extra staffing money or funds for systems to accommodate the swell of new Medicaid enrollees. Moody's said there were areas outside of Medicaid that may put pressure on states' budgets as well" (Lambert, 4/27) .