Vermont's rising Medicaid costs strain budget as officials try to determine why

September 22, 2015

An unexpected spike in Vermont's Medicaid costs has put the program and its thousands of new enrollees under heightened scrutiny. It's been less than three months since the start of the state fiscal year, but analysts say it already looks like Medicaid costs could come in as much as $60 million over budget in the 2016. Officials familiar with the situation say unanticipated increases in Medicaid expenses could end up doubling the $50-million to $70-million budget gap already looming in the fiscal year 2017 budget. Lawmakers and administration officials are trying to figure out why Medicaid costs are coming in so much higher than budget writers anticipated.