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03/01/2006 - In 2003, Medicaid eclipsed Medicare as the largest payer of healthcare claims in the United States and continues to grow rapidly. By 2005, the 40th anniversary of Medicaid, policy makers and politicians alike began to tell us the program was unsustainable.
Last year, Medicaid consumed 25 percent of states' budgets and yet costs are still expected to rise 12 percent by year's end. Why? Because demand for healthcare services continues to increase while the current Medicaid system is riddled with inefficiencies as it serves more than 53 million Americans and spends over $330 billion a year."