A new report says Missouri's Medicaid costs could rise by 6.6 percent over 10 years if the state fully implements the federal health care law.
But the report also says almost half of that increase will occur even if Missouri does not expand Medicaid eligibility for adults.
The report by the Kaiser Family Foundation and Urban Institute says Missouri can expect to spend an additional $1.2 billion from 2013 to 2022 as more people join the Medicaid rolls because of the federal health care law.
Total Medicaid spending growth (dark blue) compared to state spending (light blue). In 2009 and 2010 state spending fell sharply as federal stimulus money came to the rescue. Now the reverse is happening.
During the Great Recession, as the ranks of poor and unemployed swelled, enrollment in Medicaid shot up, growing by 7.8 percent in 2009. At the same time, state tax revenues collapsed by nearly 17 percent. States couldn't afford to pay their share of Medicaid costs, and Congress came to the rescue with the Recovery Act, boosting federal Medicaid funding by around $103 billion. But the recovery dollars ran out in June, and now states are facing the biggest yearly increase in Medicaid costs in history, according to projections by the Kaiser Family Foundation. Missouri already spends over a quarter of the state budget on Medicaid.
Health care premiums are at a record high – up nine percent since last year. A survey released Tuesday shows the average family is now paying over 15 thousand dollars a year on health care premiums. KBIA’s Jacob Fenston reports the rising costs are affecting Missourians as well.