State Medicaid ICF-MR utilization and expenditures in the 1980-1984 period.

State Medicaid ICF-MR expenditures have shown a dramatic increase during the 1980-1984 period. The ICF-MR bed capacity declined slightly relative to the total state population, whereas the number of ICF-MR Medicaid recipients increased somewhat during the period. Regression analysis showed a strong positive relation with higher ICF-MR utilization and expenditures. Higher Medicaid reimbursement rates and greater proportions of employees who were unionized were also associated with higher state expenditures. Some states may be using limits on ICF-MR bed supply and reimbursement rates to constrain their overall Medicaid ICF-MR program costs.