LAWRENCEVILLE, Ga. — Medicaid rolls are surging, by unprecedented rates in some states, as the recession tightens its grip on the economy and Americans lose their employer-sponsored health coverage along with their jobs.
In a number of states, Medicaid populations grew by 5 percent to 10 percent in the past 12 months, and in many, the growth rate was at least double what it had been in the previous year. State Medicaid officials also say that because enrollment often lags job losses by several months, the growth in 2008 may represent only the leading edge of heightened demand.
In most states, much of the growth in Medicaid has been among children from low-income families, who constitute about half of all recipients.
In a nationwide survey, with 40 states responding, The New York Times found that in some cases, the surge in enrollment had overwhelmed social-services agencies and prompted state fiscal analysts to shred estimates that were often only 6 months old.
In Colorado, which had forecast enrollment growth of about 1 percent for this fiscal year, state officials now project it will be eight times higher.
Many physicians will not accept Medicaid patients because they say reimbursement rates are too low to be profitable.
“We had been on a march to increase our provider rates over the last few years,” said Sandeep Wadhwa, Medicaid director for Colorado, “and that march has come to a complete halt as we try to come up with a plan to manage the increase in caseload with the shortfall in revenues.”
