A new study from the Urban Institute finds that growing enrollments, not inefficiency, are driving the recent big increases in Medicaid spending. Published in the online edition of Health Affairs, the study finds that Medicaid spending rose by one-third between 2000 and 2003—mostly due to growing enrollment, as more people qualified for aid as the economy declined. In fact, say researchers, Medicaid has done better than private insurers at holding down spending increases for acute care services.

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