Paper cutout of family The Medicaid burden on state budgets will pose a challenge for President-elect Joe Biden, who wants to expand Medicaid and reduce the number of uninsured people. (Photo: Shutterstock)

The coronavirus pandemic is having a domino effect on state budgets. Tax revenues have fallen and many unemployed Americans are enrolling in Medicaid, forcing state leaders to consider cutting benefits and reimbursements, the Wall Street Journal reported.

Congress boosted federal matching funds to states for Medicaid as part of its first coronavirus relief package, but many states still are struggling to afford the increasing pace of sign-ups in the program for low-income and disabled people. Enrollment for the fiscal year ending Sept. 30, 2021, is expected to jump 8.2%, with state spending accelerating by 8.4%, based on data from 42 state Medicaid directors compiled by the Kaiser Family Foundation.

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