This policy brief and accompanying snapshot examines the relationship between increases in the unemployment rate and changes in the number of people covered by employer-sponsored health insurance, Medicaid, the State Children’s Health Insurance Program and non-group insurance policies, as well as the financial implications for government budgets.

The report also estimates the potential state costs for Medicaid, SCHIP and the uninsured under such a scenario, and the potential impact of proportional statewide budget cuts on Medicaid and SCHIP funding assuming that states maintain eligibility levels for public programs. If states reduce eligibility levels or established enrollment barriers, then Medicaid and SCHIP enrollment and spending will be depressed and the number of uninsured would be higher than the estimates in this report. In addition, states may not be able to provide additional funding to hospitals and other providers to care for the uninsured.

The one-page snapshot projects the effect of rising unemployment on the financing of state Medicaid and SCHIP programs into fiscal year 2011.

 Policy Brief (.pdf)

 Snapshot: Multi-Year Look at State Financing Effects (.pdf)