In many states, Medicaid expenditures are the largest line item in the state budget. Why have Medicaid expenditures increased, and what can states do to contain Medicaid costs?
Medicaid .expenditures. have. increased. in. recent. years .largely .due to. an increase. in .eligible .enrollees. and inflation. As .a way. to .contain. costs. states. can: move. more .beneficiaries. into .managed .care .plans, improve program. integrity. and .focus .on .new .ways. to. eliminate. fraud. and .abuse, institute. higher .copays, impose. limits on. prescription. drugs, limit. benefits, reduce. provider. payments, and .improve. the .delivery. system.
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