Despite Advisory Committee’s ‘Symbolic’ Disapproval, South Carolina HHS Will Cut Medicaid Budget by 4%

The South Carolina Medical Care Advisory Committee sent a "loud and angry message" to state officials by unanimously rejecting a list of $66 million in cuts to Medicaid, the Columbia State reports. The vote, however, "is largely symbolic," since the state Department of Health and Human Services must comply with 4% across-the-board budget cuts announced Oct. 31 by the state Budget and Control Board (Bauerlein, Columbia State, 11/1). The HHS cuts are expected to include a $2 reduction in pharmacists' filling fees to $2.05 per prescription, a reduction in Medicaid reimbursement rates for nursing homes and a reduction in primary care reimbursement rates to 65% of customary costs (Kaiser Daily Health Policy Report, 10/26). Cutting provider rates offered "an immediate way" to reduce costs, state HHS Director Bill Prince said. Medicaid services will remain the same -- at least this year. However, access may be compromised because reduced reimbursements will prompt providers to drop out of the Medicaid program, according to local pediatrician Dr. James DuRant. Although Prince admits the cuts are a "bad investment," he says he has "no good news" for the future. Prince noted that the state's "budget constraints are so severe" that next year the department will "consider" limiting benefits. Saying these reductions will "erode poor people's access to health care," members of the advisory committee said they plan to lobby Gov. Jim Hodges (D) and the state Legislature for more Medicaid funding (Columbia State, 11/1). For data and other information on health in the states mentioned in today's Kaiser Daily Health Policy Report, visit State Health Facts Online.