Medicaid's growing strain on federal and state budgets is unlikely to abate over the coming decade as the cost of providing healthcare to the poor is expected to increase 7.9% annually, government actuaries have reported. Actuaries said the cost increases they expect in the coming decade are not unique to Medicaid: Costs for every form of health coverage have increased rapidly and reflect new, better, and more complex services as well as wage inflation in the medical sector. Health and Human Services Secretary Mike Leavitt said the analysis was a reminder that Medicaid spending is on an unsustainable path.