Friday, July 08, 2005

Health care funding

The National Governors Association has released The Fiscal Survey of States. The New York Times reports on it this morning. State numbers are self-reported. One finding: Louisiana is not alone in its struggles to cover health care costs. According to a representative of the NGA, "The continued rise in health care costs, spurred on by Medicaid, continues to throw a wrench in the recovery of states to emerge from the recent fiscal crisis. Medicaid continues to be the major driver of state spending, and it will continue to cut into other state budget priorities like education and economic development." There could be trouble ahead based on Louisiana's recently-passed creative financing scheme in the form of a hospital tax. The Advocate reported on Louisiana's plan in June. Georgia tried it and it backfired. This is something to watch.