Missouri Medicaid Spending Growth: 2001-2005

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Missouri's Medicaid expenditures increased by almost 50 percent between 2001 and 2005 (from $4.2 billion to $6.3 billion), which corresponds to the experiences of other states' Medicaid programs. Nationally, increases in Medicaid spending, on a per enrollee basis, have been lower than spending increases seen in the private insurance market. However, overall Medicaid spending in Missouri has been growing at roughly double-digit rates since 1998, contributing to the state's budget problems, and eventually leading to Governor Matt Blunt and the legislature calling for a complete restructuring of the Medicaid program. This report analyzes the growth in Medicaid spending using data provided by the Missouri Department of Social Services on expenditures by eligibility group and service category.¹ This study does not, however, include data that reflect the cuts and changes in Medicaid passed in the 2005 legislative session because data are collected according to the state fiscal year which runs July 1 to June 31. Therefore, annual data which include the effects of the 2005 Medicaid cuts will not be available until 2006. Ultimately, Medicaid expenditure growth from 2001 through 2005 was predominantly due to increases in enrollment, as well as changes in case mix.

1 Data from "Medicaid Expenditures by Large Eligibility Groups, FY 2001-2005" provided by the Missouri Department of Social Services, Division of Medical Services, 2005.

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The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

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