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

Genesis, Skilled Healthcare merger to create huge long-term care provider with more than 500 facilities

Genesis, Skilled Healthcare merger to create huge long-term ...

Genesis HealthCare and Skilled Healthcare Group Inc. will merge to create a single long-term and post-acute care company with more than 500 facilities nationwide, the providers announced Tuesday.

Antipsychotic use tied to acute kidney injury, increasing pressure on nursing home ...

Older people who take antipsychotic medications are at a markedly increased risk of acute kidney injury, according to newly published research findings out of Canada. The study further supports ongoing efforts to reduce the number of nursing home residents on these drugs.

Family alleges long-term care facility banned them due to social media posts, ...

Family members of a Texas long-term care resident have sued the facility where she lives, claiming they were banned from visiting due to their social media posts, according to a publication covering legal proceedings in the state.