The Treasury Department reportedly will release figures next week showing a slowdown in the growth of Medicaid costs.

• It is said that Medicaid costs increased only about 3 percent in the 1996 fiscal year.

• This would be a substantial improvement from the soaring increase that peaked at 29 percent in 1992.

• Medicaid serves 37.5 million poor, disabled and elderly people at an annual cost of $156 billion -- twice the cost of the three largest government welfare programs combined.

• The federal government pays 57 percent of the costs, with state governments kicking in 43 percent, the fastest-growing portion of state budgets in the 1990s.

Some credit the reduced growth rate to increased usage of managed care health plans, reductions in medical inflation and a federal crackdown on states that abuse the system.

Medicaid growth has averaged nearly 10 percent annually since 1992, and the current slowdown could be temporary. An economic downturn, higher health-care inflation or wider coverage could cause an upturn.

Source: Richard Wolf, "Medicaid's Soaring Growth Slips to Moderate 3 Percent in '96," USA Today, October 25, 1996.