States Considering Medicaid Cuts

Feb 19th, 2010

The New York Times reports today that many states are making or considering cuts in Medicaid as demand for the program is on the rise. Although states are temporarily barred from reducing eligibility under the federal stimulus legislation, some states are reducing optional benefits, like dental and vision care, as well as reducing payments to providers. Examples cited include:

·       Nevada, facing an $881 million budget deficit, is looking at ending Medicaid coverage of adult day care, eyeglasses, hearing aids and dentures; and

·       Kansas has cut provider payments by 10 percent effective January 1;

·       Georgia faces a Medicaid shortfall of $608 million and is considering a 1.6 percent tax on hospitals and a two percent cut in provider payments;

·       The Governor of Arizona has called for ending Medicaid coverage for 310,000 childless adults and eliminating the Children’s Health Insurance Program; and

·       Tennessee is debating a nine percent cut in the TennCare budget and limits on inpatient hospital and other services.

The Kaiser Family Foundation reports Medicaid enrollment increased by 3.3 million nationwide from June 2008 to June 2009, a period in which unemployment rose by four percentage points. Total enrollment increased nationwide by a record 7.5 percent, with 13 states experiencing double-digit increases.

The National Association of State Medicaid Directors estimates state budget shortfalls will total $140 billion in the coming fiscal year. As one of the largest expenditures in state budgets, Medicaid is an “unavoidable target” for cuts reports the Times. Kentucky is not currently considering cuts in Medicaid services Medicaid, according to this news item in today’s Courier Journal.

Read the full New York Times story here.

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