(The Center Square) – Medicaid remained the leading driver of federal grant funding for Georgia in fiscal year 2020 despite the COVID-19 relief the state received, a new report shows.
The Pew Charitable Trusts report released this week found Medicaid and other health grants increased while other federal grants declined, even with the injection of COVID-19 aid.
Chris Denson, director of policy and research at Georgia Public Policy Foundation, said the report points to a need for spending reforms.
“The continued growth of Medicaid spending highlights the need for program reforms at the federal level that allows for additional state flexibility to best serve the needs of this population,” Denson said.
Pew found from fiscal year 2008 to fiscal year 2020, federal grants to states increased by 93% when adjusted for inflation. Most of the growth was in fiscal year 2020, when the federal government provided states with grants to respond to the COVID-19 pandemic. About 42% of Georgia’s federal aid in fiscal year 2020 covered Medicaid and other health programs. Pew’s report showed 31% was coronavirus aid.
States received billions of dollars in federal aid to bolster public health care response, support schools and businesses, supplement unemployment and other social services because of the unprecedented event.
Pew found coronavirus relief funding caused federal aid to increase by 37% from fiscal years 2019 to 2020, while federal grants rose an average of 4% annually during the previous five fiscal years. Health grants grew 73% from fiscal 2008 to fiscal 2020, while other federal grants declined during the same period.
Georgia was 10th-lowest in the report in its federal share of Medicaid and health grants among the states. The state experienced an increase in Medicaid enrollment during the pandemic and over the decade, research showed.
State lawmakers have debated expanding Medicaid under the Affordable Care Act, which would increase the federal portion of the program. Republicans, who hold a majority in the Legislature, have opposed a full expansion that would increase the federal share to 90%. Gov. Brian Kemp has submitted a plan to the federal government that would partially increase enrollment without increasing the federal share.
Denson said studies have shown states that have expanded Medicaid have seen “an increase in ambulance response times, unnecessary visits to emergency rooms, and longer wait times for doctor’s appointments – without improving health outcomes.”
Denson also fears the trend captured in the Pew research could be troubling for states.
“Continued spending on Medicaid will worsen the federal deficit and crowd out other spending priorities such as education and public safety at the state level,” Denson said.
