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Medicaid: The Entitlement Program Shaping Maryland's Future

By Ron Lindsey
Published on Monday, February 27, 2006
MARYLAND POLICY REPORT

Recent headlines in Maryland that trumpet a potential Maryland billion dollar budget shortfall tell only part of the story of Medicaid in Maryland and miss what is more significant. Although the news is disturbing, the very nature of the Medicaid program suggests even greater budget shortfalls await Maryland in the near future if current trends continue. Medicaid, if left unreformed, will continue to undermine Maryland’s fiscal future.

Maryland’s policy makers have no early warning system to alert them to the potential impact of Medicaid on future budgets. With little fanfare, Medicaid has already grown, in a relatively short time, to become the single largest expenditure in most states’ budgets. Maryland is no exception. According to current Medicaid reports, Maryland’s Medicaid spending will double from 1998 to over $5 billion in 2006.1

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