Health care costs chew on budget

As Gov. Martin O?Malley and lawmakers look ahead at funding new programs in future years, health care spending for the poor and health insurance for employees and retirees is consuming an increasing chunk of the budget, with no relief in sight.

In O?Malley?s proposed fiscal 2008 budget, for instance, the Medicaid health insurance program for the poor and disabled takes up 18 cents of every dollar. This year, 643,000 people ? 11 percent of the state population ? get their health insurance this way.