Most states proposing FY 2012 Medicaid cuts

Share this article:
Financial outlook is grim for not-for-profits, analyst says
Financial outlook is grim for not-for-profits, analyst says
Nearly all states are enacting Medicaid cuts for fiscal year 2012 to deal with overwhelmed budgets and a slow economic recovery, according to a new report by the National Association of State Budget Officers and the National Governors Association.

To deal with Medicaid shortfalls, 33 states have proposed lowering provider payment rates to nursing homes, hospitals and physicians; 16 states have floated provider payment freezes; and 25 states likely will introduce benefit limits, according to the report. Other Medicaid-reducing strategies include limiting spending on prescription drugs, and enacting or increasing existing copayments.

Still, it's a tough battle for budget-plagued states: Forecasts predict an 18.6% increase in Medicaid spending for states while federal funds decrease by 13%.

As states consider cuts for FY 2012, they are also weighing new regulations under the Patient Protection and Affordable Care Act. These include maintenance of effort provisions, which require maintaining the Medicaid eligibility rules in place when the Act went into effect, according to the Bureau of National Affairs.
 
“As states look ahead, it is not just the economy that gives them pause, but also the aging of our population and the seemingly inexorable increase in healthcare costs,” said NGA Executive Director Dan Crippen.
Share this article:

More in News

'Minor' issues at the nursing home can cause disastrous care transitions, expert warns

'Minor' issues at the nursing home can cause ...

What may appear to be minor administrative problems in a nursing home - a fax machine locked away at night or no one designated to copy paperwork - can cause ...

Long-term care facilities approach 80% worker flu vaccination rate after handing power ...

Fourteen long-term care facilities in Pennsylvania dramatically increased their staff flu vaccination rate by having a regional pharmacy take over the process, according to a report issued Thursday by the Agency for Healthcare Quality and Research (AHQR).

RACs were 'most improved' healthcare auditors for getting back money in 2013, ...

Medicare Recovery Audit Contractors dramatically stepped up their overpayment recoveries last year, returning nearly $487 million more to the government than they did in 2012, according to a new report from a federal watchdog agency.