Thursday, 21 April 2011
The House budget that could be approved in the next two weeks would cut more than a billion dollars in health and human services spending over the next two years, more than $710 million of it Medicaid. That’s a bad idea for several reasons.
The deep reductions in Medicaid funding means fewer services for people who need them, lower reimbursements for the medical professionals who provide them, and a loss to the state of more than $2 billion in federal Medicaid funding since the federal government matches state Medicaid expenditures 2 to 1.
A significant portion of the budget savings comes from paying doctors less for treating Medicaid patients and from the elimination of a routine inflationary increase that’s built into the program to take into account rising health care costs.