KFF October 23, 2024
Costs are limiting states’ coverage of obesity drugs and could affect other Medicaid priorities
States expect national Medicaid enrollment to decline by about 4% and state Medicaid spending to rise by 7% in fiscal year (FY) 2025. These rates follow a larger but anticipated enrollment decline and state spending increase in FY 2024, as pandemic-era policies and federal funding expired, according to KFF’s 24th annual survey of state Medicaid directors.
While state fiscal conditions remain stable heading into FY 2025, the longer-term fiscal and policy outlook for Medicaid programs is less certain. Reduced state revenue collections, the expiration of pandemic-era federal funding, and macroeconomic uncertainties, may discourage states from increasing funding for access to behavioral health, long-term services and supports,...
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