Recovery Bill Likely to Prevent Medicaid Cutbacks

By providing state Medicaid programs with $87 billion in fiscal relief, American Recovery and Reinvestment Act of 2009 (ARRA) is likely to be effective in preventing many large Medicaid cutbacks. Targeting 35% of assistance to states with particularly high unemployment rates, ARRA will provide more "bang for the buck" in preventing state cutbacks and stimulating the economy than did fiscal relief legislation in 2004, which gave all states the same level of help.