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Sunday, November 22, 2009
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Use of one-time money for Medicaid deficit
Louisiana’s health chief proposed Tuesday using one-time money to fill some three-fourths of a $308 million projected shortfall in the state’s $6.5 billion Medicaid program.
State Department of Health and Hospitals Secretary Alan Levine called the plan he outlined to legislative money committees “a balanced approach” that will for now shield private health care providers from more cuts.
The use of one-time money for recurring expenditures has been opposed by Gov. Bobby Jindal and some legislative leaders.
Increases in projected spending in Medicaid — the government health insurance program for the poor — is occurring in payments to private hospitals, nursing homes, pharmacy, laboratory and x-ray services, according to DHH data.
The $231 million in one-time money that includes some federal stimulus dollars, a financial settlement as well as tapping proceeds in a special account will help bridge the gap, said Levine.
The Joint Legislative Budget Committee must approve many of the elements in the Medicaid budget-balancing proposal.
Budget committee co-chairman Rep. Jim Fannin, D-Jonesboro, said the DHH projections of a budget shortfall could be over-inflated because they are based on one-quarter worth of data.
“These are projections,” said Fannin, recalling how DHH last year proposed cuts based on similar data only to determine a short time later that the numbers didn’t hold up.
Levine said it is the best estimate DHH can provide today.
Because of uncertainties, Levine said he is suggesting use of one-time money instead of cuts in payments to health care providers which would have to be rescinded if conditions improve.
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