(1) While a number of states have improving economies and stable state finances, nearly half are facing budget challenges for FY 2018 and relatively weak state revenue growth. While experiences vary across states, at least 12 governors are proposing broad-based state budget cuts for FY 2018. (2) Despite some budget challenges, governors are proposing more enhancements to Medicaid compared to restrictions. For example, governors proposing provider rate increases or benefit enhancements for FY 2018 outnumber the governors proposing rate cuts or benefit restrictions. Many governors continue to propose policies to expand the use of managed care and community-based long term services and supports. (3) Despite federal debates regarding the ACA and Medicaid, proposed budgets continued to build on Medicaid as well as ACA Medicaid expansion coverage to address broader health priorities including the opioid epidemic, behavioral health issues, and treatment for persons involved with the criminal justice system.
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