Feb 2011
States continue struggling to find ways to close budget deficit gaps that have resulted from an unprecedented drop in revenues during the recession while facing an increase in the number of people applying for Medicaid after losing their jobs and employer-sponsored coverage. Coverage levels in public programs have remained stable as a result of the temporary Medicaid fiscal relief provided to states through June 2011 provided by the American Recovery and Reinvestment Act of 2009 (ARRA), which has required states to maintain their Medicaid and CHIP eligibility rules and enrollment procedures until broader health reform goes into effect. Given the impending loss of the temporary federal funding provided by ARRA, states continue to develop ways to overhaul their Medicaid programs in order to generate savings and, ultimately, close budget gaps.