States Expect Medicaid Enrollment and Spending to Increase by Over 8 Percent Each in FY 2021, Primarily Driven By a Slumping Economy and Federal Conditions to Maintain Eligibility to Access Enhanced Federal Medicaid Funds

Following several years of declining or flat enrollment growth, states expect Medicaid enrollment and spending each to jump by more than 8 percent in fiscal year 2021, chiefly due to a slumping economy amid the pandemic and federal conditions to maintain coverage to access enhanced federal matching funds, according to a new KFF Medicaid budget survey.

The 20^th annual survey of state Medicaid directors finds that enrollment is expected to grow by 8.2 percent and combined federal and state Medicaid spending expected to increase by 8.4 percent in the next fiscal year, reflecting a dramatic reversal in economic conditions and state fiscal outlooks. This follows total Medicaid spending growth of 6.3 percent for fiscal 2020, a year in which...

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