Robert Wood Johnson Foundation

Following successful children's outreach efforts, and now facing rising unemployment and health care costs, the demands on state Medicaid budgets are increasing at the same time that states have less funds available for their share of Medicaid. Governors and state legislatures have identified Medicaid as their leading "budget buster," and are looking for any means possible to control costs. The Bush Administration is permitting benefit cutbacks, while many Governors and members of Congress are seeking to increase federal Medicaid funding in the midst of an already strained federal budget. Are there effective methods to moderate the underlying health care costs for the Medicaid population? What policy tools are available to provide quality care to Medicaid beneficiaries at a price states and the federal government can afford? These questions are addressed in the paper, Medicare Budget Options, which was presented at the Ninth Princeton Conference, Can Health Care Spending Be Contained?, June 6-8, 2002.

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