The Administration’s Medicaid Cost Proposals Would Shift Costs to States

February 14, 2006 The Administration's Medicaid Cost Proposals Would Shift Costs to States The Bush Administration's Medicaid cost savings proposals are projected to save the federal government $35 billion. The states' savings under this plan are projected to be ten times less. In addition to bringing minimal savings to the states, the Administration's plan shifts costs to the states that negate any state savings. The Administration's proposal will intensify costs on the states. The states will be left with three basic options to reduce Medicaid costs:  Limit eligibility Reduce benefits or increase beneficiary co-payments Reduce . . .