THE NEWS SERVICE OF FLORIDA: Panel hears of possible Medicaid cuts
Mar 20, 2009
By MICHAEL PELTIER
TALLAHASSEE, March 19, 2009 — Hospitals and nursing homes would take the biggest hit under a list of options unveiled Thursday by Agency for Health Care Administration officials who outlined $338 million in general revenue cuts as part of an “exercise” to cut 10 percent from their overall Medicaid budget for the upcoming fiscal year.
Reimbursements to primary facilities would be cut by 12.1 percent, amounting to $141 million in cuts for hospital inpatient care and another $115 million in nursing home reimbursements. Hospital outpatient care would also be cut by $39 million.
Phil Williams, assistant deputy director for Medicaid finance, said health care officials would have little choice but to cut direct reimbursements to health care providers, who already complain that the rates are too low.
“In order to achieve the levels of cuts, the only remaining categories (are direct payments,)” Williams said. “…We recognize the fact that this would have a serious impact on these providers.”
Combined with trust fund matches, the total cut would exceed $1 billion but does not take into account potential federal stimulus funds, state officials told members of the Senate Health and Human Services Appropriation Committee, which took testimony from agency heads as part of a budget cutting exercise.
The Senate Health and Human Services Appropriations Committee is scheduled to release its proposed budget next Friday.
Health officials say they are limited in what they can cut. The stimulus package requires the state to retain eligibility for most optional programs like the Medically Needy in order to qualify for funds. But state officials have an out. They don’t have to fully fund the optional programs.
Eliminating most Medically Needy services for adults would help cushion the blow on hospital and nursing homes, Williams said.. By limiting the Medically Needy program to ambulatory services, the state would save $283 million and reduce the proposed cuts for primary care reimbursements to 8.5 percent. But that option drew criticism from panelists, who said state lawmakers need to take full advantage of federal stimulus money to ensure that critical programs continue.
“This is totally unacceptable,” said Sen. Nan Rich, D-Weston. “We’re getting a large amount of stimulus dollars. We need to fight to keep it here (in health care.)”
Other cuts could include Medicaid spending on chiropractic services, podiatrists, and vision and hearing services, which would save about $12 million in general revenue funds.
“I hope we can work something out to alleviate some of the pain,” said Sen. Eleanor Sobel, D-Hallandale Beach.