Expecting Higher Costs and Enrollment Numbers, Washington State May Scale Back Subsidized Medical Services

Washington state is expected to need another $600 million over the next two years to cover rising medical assistance costs, and officials are considering cutting back on outreach programs and services to save funding, the Spokane Spokesman-Review reports. Officials say the projected costs are due to rising prescription drug costs and an expected enrollment increase of 90,000 people in state programs by 2003, or 12%. The following are some of the options the state Department of Social and Health Services is considering to cut costs:

• Reimbursements: Using the still partially open Medicaid upper payment limit "loophole," the state would give increased payments to hospitals for Medicaid patients, which would "trigger new federal revenue" and bring in about $140 million to the state.
• Prescription drugs: The state would increase requirements for doctors to use "cheaper" generic drugs instead of name brand medications.
• Audits: The state would hire 78 FTEs to review bills and audit contracts. Despite the additional administrative costs, the financial reviews could save $15 million, officials say.
• Dental care: By not offering dental service to adults, the state could save $20.4 million. Not everyone would lose coverage, as about 5,500 developmentally disabled people would continue to receive "full scope" dental care.
• The uninsured: The state could reduce funding for emergency medical care for the uninsured not eligible for Medicaid by $34 million. If approved, $51 million would remain to treat the medically indigent.
• Vision care: Eliminating coverage for adult vision services would save the state $4.4 million.