Federal dollars given to states for Medicaid swelled nearly 18% this year to cover millions of newly eligible people, helping to reverse the trend of shrinking state budgets. Medicaid now makes up one-quarter of all state spending, with around $41.8 billion coming from the federal government over the last year, according to a report
from the National Association of State Budget Officers. All other spending dropped $3.4 billion. As a result of Medicaid expansion, enrollment soared 8% this year and is expected to rise 13% next year, according to the report. While the federal government currently covers all costs of the expansion, that support will drop to 90% by 2020.