Reports | Fact Sheet | Presentation

MassHealth and State Fiscal Health: A New Look at the Effects of Medicaid Spending on State Finances

A new report from MMPI and the Massachusetts Budget and Policy Center looks at the relationship between state Medicaid spending and state fiscal conditions. While many analyses of Medicaid spending compare it to the state budget in a given year, concluding that the Medicaid program is a growing burden on the state’s finances, this report takes a broader view. It looks at Medicaid spending in relation not only to total public spending, but also to state revenues and overall economic growth. The report concludes that, between Fiscal Years 1994 and 2005, Medicaid spending changed very little in relation to the economy as a whole, and therefore was sustainable given the economic growth over that same period. Looking at Medicaid spending with this broader view provides a new context for policy makers as they think about the Medicaid budget, now and in the future.

Click here for the full report

Click here for a two-page fact sheet