As pandemic-era protections expire, states are grappling with unexpectedly high healthcare costs for Medicaid recipients. Pennsylvania Governor Josh Shapiro proposes a $2.5 billion increase in Medicaid spending to address the issue, driven by a sicker population than initially anticipated.
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“The delays in health care access have had a significant impact on this population — a lack of access to general and specialty care; delayed procedures; avoidable hospital stays and emergency department visits; development of comorbidities; and a lack of preventative medicine as a whole,” Shapiro's administration said.
The alliance's members — typically nonprofit insurers that have hospital systems and state Medicaid contracts — in several states were “facing an existential threat” from low reimbursement rates, said Dan Jones, the alliance's senior vice president for federal affairs. Tax collections are projected to rise by less than $800 million in the 2025-26 fiscal year, and Republican lawmakers are wary about spending down the state's roughly $10.5 billion surplus for fear of depleting it within a few years.
Medicaid Healthcare Costs Pandemic State Budget Health Policy
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