Georgia Health Department Requests Large Budget Increases To Pay Medicaid Claims and Raise Reimbursements

Georgia's health agency on Aug. 29 approved a budget request that seeks $353.5 million in state funds for the remainder of this fiscal year and $433.9 million for FY 2003, with most of the money targeted toward shoring up the state's Medicaid program, the Florida Times-Union reports. The Board of Community Health, the governing body of the Department of Community Health, proposed that $320 million of the supplemental funding for the fiscal year ending June 30, 2002, go toward paying Medicaid claims "left over from the past several years." The FY 2003 funds -- which, if appropriated by lawmakers, would be a "whopping 32% increase" over the agency's budget this year -- would largely be used to raise Medicaid provider reimbursement rates, which "have lagged behind the rising costs of providing medical services," the Times-Union reports. State Rep. Mickey Channell (D), who chairs the House subcommittee that oversees the Medicaid budget, said that lawmakers "might be stunned" by the health department's request. But, he added, they "won't have a choice" but to meet the funding request because Medicaid is an entitlement program. Barnes' administration will address the department's budget request this fall and will present his 2002 supplemental budget and 2003 spending outline to lawmakers in January. "In general," Barnes, citing the economic slowdown, is "allowing state departments no more than 2% in additional spending," the Times-Union reports (Williams, Florida Times-Union, 8/29). For further information on state health policy in Georgia, visit State Health Facts Online.