Debt deal for states: whither Medicaid?

August 2, 2011

Debt deal for states

As we reach the end game in Washington, states still have no idea how a reduction in federal spending will trickle down to their budgets. drills down to the number one concern of governors and state legislators — Medicaid (emphasis mine):

Among the biggest concerns for states was — and remains — the fate of Medicaid, the joint state-federal health insurance program serving more than 60 million poor Americans. That’s because Medicaid is generally the biggest item in state budgets. In the short term, the debt deal appears to spare Medicaid from immediate cuts in federal support. What’s more, Medicaid was specifically exempted from a “trigger” mechanism that would reduce spending automatically if the special congressional committee does not achieve its deficit-reduction goals.


NYT: States and Cities Brace for Far Less Money From Washington

Reuters: Three reasons conservatives should oppose a balanced budget amendment

Obesity visualized



Medicaid moguls

As a nice bookend to state officials’ concerns about Medicaid, the New York Times has an outstanding piece today on the excessive pay for executives who provide care to the developmentally disabled. Medicaid funds these programs with federal and state dollars. All is not well in the public, non-profit sector. From the NYT:

Mr. Castellani, the former Office of Mental Retardation and Developmental Disabilities official, calls them “Medicaid moguls” — the nonprofit executives who have prospered while providing services to 135,000 developmentally disabled people in New York.

At the top of the class are the executives at the Young Adult Institute. No organization in the field in New York has paid its executives as well. Four of its executives received compensation in excess of $500,000 in 2009; none of its competitors had more than one executive at that level, according to a review by The Times of tax returns of the 100 largest providers.

Twitter Talk

@moorehn: RT @pewresearch: Public Sees Budget Negotiations as “Ridiculous”, “Disgusting”, “Stupid”

@PatrickMcGee_BB10-yr Treasury yield down 7 bps at 2.68%. Has fallen 91 bps since mid-April, including 30 bps since S&P issued downgrade warning July 14.

@OtisCasey: Markit MCDX 184bp (-2) reflecting tght in US sovereign risk more than Central Falls, RI bkrptcy filing #muniland Sngles broadly tght 3-5bp

@davidlebovitz: Nice to know America isn’t closing, but am a little miffed there’s not going to be any kind of going-out-of-business sale while I’m here

@OKPolicy: Heat wave turning rural communities virtual ghost towns, heightening isolation of elderly residents

@PublicPerform: Cuyahoga County cuts take-home cars |…

Good reads

BNP Paribas: US State and Local Government Finances: from Recession to Austerity

MSRB: Quarterly Meeting July 2011

Reuters: Muni board keeping eye on U.S. debt fight’s effects

Transportation Nation: Is the Indiana Toll Road Operator in Danger of Default?

Tollroads News: Illinois Tollway proposes 90% toll rate hikes – in support of smaller capital program Sharing More Pension Data with Investors Kevin Riordan: Norcross focuses on Camden

McClatchy: Federal spending cuts may hit California farm subsidies, high-speed rail

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