Situation Report | October 11, 2021
The state’s latest Medicaid Global Cap Report shows state Medicaid expenditures of $6.8 billion for the period of April 2021 through June 2021 — $252 million below the $7.052 billion spending target.
The Medicaid Global Spending Cap increased from $19.9 billion in Fiscal Year (FY) 2021 to $22.3 billion in FY 2022, a net increase of $2.4 billion. This net increase primarily includes the Global Cap index growth of $580 million (based on the 2.9 percent trend of the ten-year rolling average of the Medical Care Consumer Price Index [CPI]), increased costs for minimum wage rate adjustments of $369 million and the year-to-year decline of COVID-19 enhanced Federal Medical Assistance Percentage (eFMAP) support ($1.2 billion).
The report highlights specific sectors. For instance, Mainstream Managed Care plan spending was $3.831 billion compared with a global cap target of $3.866 billion, or $35 million under the cap. Long Term Managed Care spending was $2.677 billion compared with a global cap target of $2.775 billion, or is $98 million under the cap. Finally, Other Long Term Care (which includes home health) spending was $224 million compared with a global cap target of $227 million, or is $3 million under the cap.
Meanwhile, due to enrollment of individuals who lost their employment or had lower income because of the COVID19 pandemic Medicaid enrollment is expected to grow to 7,120,364 individuals by March 2022, an increase of 163,000 individuals from March 2021.