KFF April 3, 2020
As new unemployment claims hit 6.6 million as of March 28th due to coronavirus – and a total of about 10 million over a two-week period – it will become increasingly important to monitor what happens to individuals who lose income and may qualify for Medicaid or become uninsured and what this means for state budgets.
Medicaid is a countercyclical program, so during economic downturns more people lose income and will qualify for Medicaid. Medicaid spending is driven by multiple factors, including the number and mix of enrollees, medical cost inflation, utilization, and state policy choices. During economic downturns, enrollment in Medicaid grows. Looking back, we see peaks in Medicaid spending and enrollment growth in 2002 and 2009 due to...