Medicaid spending inched up in 2017; Verma continues call to slow growth

Medicaid spending hit $592.2 billion in 2017, with federal expenditures accounting for $370.6 billion, or 63% of that sum, according to new federal data. That’s up from $580.9 billion in 2016 when federal Medicaid spending was $368.2 billion.

The majority of spending was on traditional Medicaid enrollees such as children, the disabled and frail individuals. The adult expansion population cost the federal government and states a total of $70.8 billion in 2017, up 6.5% from $66.5 billion in 2016. An estimated 12.2 million expansion enrollees were covered in 2017, just under 17% of the 73.8 million total enrollees that year.

Despite their small impact on program spending, CMS Administrator Seema Verma seemed to reiterate her concerns on Twitter about able-bodied adults threatening the long-term viability of the program. “We must slow the growth in Medicaid spending so that it will always be around to serve those that truly need it,” Verma said in a tweet.

Over the last 21 months, the agency has approved numerous waivers that allow work requirements and coverage lockouts on the expansion population for unpaid premiums. Reports show thousands have lost coverage in Arkansas and Indiana because of these waivers.

However, Medicaid spending is still expected to grow over the next 10 years at an average annual rate of 5.7% and to reach $1 trillion and an enrollment of 82.3 million by 2026.