A positive note on states' healthcare spending.(News & Numbers)(Kaiser Commission on Medicaid and the Uninsured's report)(Brief

A recent study from the Kaiser Commission on Medicaid and the Uninsured indicates that state revenue growth in FY 2006 exceeded Medicaid cost growth for the first time since the late 1990s. The report presents the findings from a survey of Medicaid officials from all 50 states and the District of Columbia. Key findings include:

* Medicaid spending slowed to near record lows as state revenues continued to rebound

* States continue to focus on measures that control costs, but improving fiscal conditions allowed for more program investments than in previous years

* Many states expect the new citizen documentation requirements to increase administrative costs and to negatively affect enrollment

* Few states planned to use new flexibility allowed to change benefits or impose cost sharing in FY 2007

* A growing number of states are moving forward to expand community based long-term care services, with nearly three-quarters planning to implement expansions in FY 2007

* States were more focused on expanding disease management, quality initiatives, and program integrity efforts, which are more likely to have longer-term program benefits rather than immediate savings

* While states and beneficiaries have overcome some of the early Medicare Part D implementation issues, state officials identified several ongoing concerns

* Ongoing fiscal pressures, as well as the changing balance in the federal-state partnership for Medicaid, will continue to be major factors affecting the program.

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