The COVID-19 pandemic has had a devastating impact on the U.S. economy and it is likely to continue for the foreseeable future. The unemployment rate reached a high of 14.7% in April 2020, and is expected to average 9.3% for the year.[i][ii] One of the consequences of job loss is an increase in Medicaid enrollment. At the same time, state tax revenues are decreasing. This situation exacerbates already stressed Medicaid budgets across the nation.
Right now, many states are in the process of projecting budgets and working to address budget cuts and shortfalls. For more than 43 years Myers and Stauffer has assisted states with navigating complex budget challenges. To aid you as you develop budget strategies, we used our formidable experience to gather a few ideas that you may wish to consider. Some of these strategies could lead to a more immediate budget impact, while others may have a longer timeline for impact.
This list is not exhaustive, and we would be glad to schedule time to discuss these and other ideas as you strategize to address the Medicaid fiscal impact due to COVID-19.
[ii] Board of Governors of the Federal Reserve System. “Table 1. Economic Projections of Federal Reserve Board Members and Federal Reserve Bank Presidents, Under Their Individual Assumptions of Projected Appropriate Monetary Policy, June 2020.” Accessed July 10, 2020.