The unsustainable course of American health expenditure is placing growing pressure on state budgets from one end of the country to the other. The Washington Post has the story:
The Fiscal Survey of States says that even as states struggle with tepid revenue growth, they will be called on to spend more because of the economic distress caused by continued high unemployment…Officials say the fiscal pressure that Medicaid puts on states is expected to increase when the federal health-care overhaul takes effect in 2014…States are also struggling to meet the needs of local governments. Many states cut aid to localities during the recession, and many of them want it restored.
State spending on Medicaid increased, on average, a whopping 29 percent this year. That cost looks set to increase, and there is no money to pay for it. The new health care law that supporters argued would solve these problems appears to be making them worse.This can’t go on forever, and it won’t.