MassHealth and State Fiscal Health: A New Look at the Effects of Medicaid Spending on State Finances

June 26, 2006

This report from MMPI and the Massachusetts Budget and Policy Center looks at Medicaid spending in relation not only to total public spending, but also to state revenues and overall economic growth. It concludes that, between Fiscal Years 1994 and 2005, Medicaid spending changed very little in relation to the economy as a whole, and therefore was sustainable given the economic growth over that same period. Looking at Medicaid spending with this broader view provides a new context for policy makers as they think about the Medicaid budget, now and in the future.