Idaho Bill Would Cap State Spending on Medicaid Expansion Program at $4.6M

Concerned about spending on Idaho's CHIP program, a Medicaid expansion program, state lawmakers have proposed a $4.6 million spending cap for the program in fiscal 2002, among other budget tightening provisions, the Spokane Spokesman-Review reports. Under the budget proposed for the state's Department of Health and Welfare, lawmakers also have asked the department to "delay a 'utilization management program'" that is designed to ensure Medicaid patients do not receive "unneeded" services. The budget also includes provision that would require Medicaid beneficiaries to contribute copayments for some services. State Sen. Robert Lee (R), who proposed the cap, said that because of outreach efforts, the CHIP program has been "growing quickly." Between July and March of this fiscal year, program costs were $8.8 million, $1.76 million of which is state money, the Spokesman-Review reports. Compounding the situation, the state's Medicaid program "has been growing at a rate that the state won't be able to afford in the future," Lee added. The $4.6 million cap is least amount the state must spend on its CHIP program to receive all available federal funding. Lee said, "We had to try and figure out what to do to make certain that the [spending] increases don't continue, so we decided to cap CHIP at what the federal cap is. We can cover everyone at the current level. It's the appropriate thing to do to keep this thing under control." The proposed budget would allow the health and welfare department to lower the program's income eligibility level -- now 150% of the federal poverty level -- if necessary to stay within the spending cap.

Concerned Parents
Families with children in the program are concerned that the spending cap could "cut off benefits for their children," the Spokesman-Review reports. Members of the Idaho Community Action Network gathered last week at the state Capitol to protest the cap. Families said the proposed changes are "too important" for legislators to try to "sneak" them into the budget. The Legislature's joint budget committee, which wrote the proposed budget, is the only committee that does not allow public testimony, the Spokesman-Review reports. Generally budget bills are left unchanged after the joint committee writes them, the Spokesman-Review reports. Health and welfare department spokesperson Bill Walker said it is "unlikely" the department would exceed the cap next year, but he added that the "possibility does exist." He said, "We haven't figured out how we would accomplish a change in the eligibility rate. We'll have to do some thinking" (Bow, Spokane Spokesman-Review, 3/11). To access the Legislative Budget Summary for FY 2002, visit http://www.jfac.state.id.us/LBS2001.htm. Note: You will need Adobe Acrobat to access different department budget information.