Balancing Medicaid Budgets and Serving State Residents During A Pandemic: Considerations for Governors

This paper outlines key factors for governors and state leaders to consider when balancing state budgets and making difficult decisions about funding Medicaid during the COVID-19 crisis and subsequent economic downturn. It explores the challenges faced by states, the role of Medicaid and the strategies implemented in prior recessions to lower state costs and maintain enrollment. For example, Medicaid agencies may be asked to reduce spending because of a decrease in state revenue while Medicaid enrollment is growing. Governors and state leaders will need to carefully consider potential changes to the program as the demand for services increases.