IHA Urges Lawmakers to Reject $463M in Medicaid Cuts

John Commins, for HealthLeaders Media , May 12, 2011

IHA also called on state lawmakers to use revenue projections provided by the nonpartisan Commission on Government Forecasting and Analysis in setting appropriate spending levels for the state budget.  The commission this spring issued a state revenue projection of $34.3 billion, more than $1 billion above the estimate now being used by the House.

"Using understated revenue projections will lead to unnecessary and harmful spending cuts that will hurt our state's most vulnerable populations, including the young, the elderly, the disabled, expectant mothers, and the newly employed," Wurth said.

Rather than relying on "blunt cuts," IHA said it has identified more than $100 million in targeted savings, including reductions in preventable readmissions and unnecessary utilization.

IHA also called for the use of interfund transfers that would allow the state to quickly obtain $90 million in new federal Medicaid funds by maximizing the state's temporarily higher matching rate under the economic stimulus law. The House unanimously approved a bill to authorize the transfers, and that bill is now pending in the Senate.

John Commins is a senior editor with HealthLeaders Media.

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