U.S. states are receiving and spending more money on the Medicaid health insurance program due to new measures laid out in the Affordable Care Act, a report released Thursday by the National Association of State Budget Officers showed.
"Over the past three fiscal years, spending from states' own revenue sources has moderately grown each year, while total state expenditure levels (including all state and federal funds) have been more volatile due to the impact of federal funding changes," according to the report. "Federal funds to states have fluctuated as a result of both the Affordable Care Act and the Recovery Act."
The Affordable Care Act, known as Obamacare, not only allowed more people to enroll in Medicaid, but also gave states increased reimbursements, anywhere from 90 percent to 100 percent of the cost, for new enrollees, reported Reuters.
This increase in federal funds to states was "almost solely due to additional Medicaid dollars," the report found, which mainly resulted from "the expansion of Medicaid in some states under the Affordable Care Act."
"While federal Medicaid funds to states increased $41.8 billion in fiscal 2014, all other federal funds to states are estimated to have declined $3.4 billion."
In both 2013 and 2014, Medicaid experienced sharper growth than all other program areas, according to the report, going from representing 24.5 percent of total state spending in 2013, to 25.8 percent in 2014, largely attributable to new Affordable Care Act funds.
"In fiscal 2014, it is estimated that federal funds will grow to 30.3 percent of total state spending due to increased Medicaid funds, while general funds will decline slightly to 40.5 percent," according to the report.
Total state expenditures experienced growth in nearly all programs - elementary and secondary education, higher education, public assistance, Medicaid, and corrections and transportations – in both 2013 and 2014.
The only category to not experience growth in 2014 was public assistance.
When the U.S. stimulus plan expired and Congress passed spending cuts, states no longer needed to rely as much on federal funds, according to Reuters.
After the stimulus plan ended in 2012, federal funding to states decreased from 34.9 percent in 2010 to 30.3 percent in 2014.
