Medicaid Spending Increased By 10.7% In First Half Of 2007

Medicaid spending increased by 10.7% in the first six months of 2007 -- the largest increase since 2001 -- and likely will reach $330 billion this year, according to a USA Today analysis of data from the Bureau of Economic Analysis. USA Today attributed the increased Medicaid spending in part to:

• Efforts by states to extend health insurance to more residents through Medicaid and SCHIP;
  
  
• Increased enrollment in Medicaid after a temporary decrease in 2006 that resulted from implementation of new proof-of-citizenship rules; and
  
  
• Increased Medicaid reimbursements for health care providers.