Surging Cost for Medicaid Ravage State, Federal Budgets.

It was reported in the Wall Street Journal today, that the costs for Medicaid are severly hurting Mississippi's budget. In that state alone, Medicaid spending has doubled to 3.5 billion dollars. Gov. Haley Barbour said that "Medicaid is a cancer on our state finances."

In the current fiscal year, which will end on June 30, it is predicited that Medicaid costs will be 268 million dollars more than the state budgeted for the program. State officials are warning that the program will run out of money by the end of February unless the legislature passes an emergency appropration. The state has already shut down some construction projects. The state may also delay plans to give public school teachers a raise.

Is this just a problem in Mississippi or will it turn out to be problematic in other states, or maybe the nation, as well?

The article can be found here: http://online.wsj.com/article/0,,SB110773763704247315,00.html?mod=health%5Fhs%5Fpolicy%5Flegislation