Oklahoma Health Care Authority Cuts $11 Million from Medicaid

The Oklahoma Health Care Authority voted unaminously on Jan. 10 to cut $11 million from public health care programs, a move that many health care providers say will "jeopardize" thousands of women, children and seniors who rely on Medicaid, the Associated Press reports (Talley, Associated Press, 1/10). Faced with "spiraling" medical costs and a $21.3 million budget shortfall, the agency voted to cut $3 million in Medicaid payments to physicians and outpatient medical centers. The Daily Oklahoman reports that income eligibility guidelines for the state's Medicaid program will also be reduced. Currently, a family of four earning $32,000 per year is eligible to receive medical services through Medicaid at no cost. However, that ceiling would be reduced to $23,400 in some cases, resulting in "thousands of people being dropped from Medicaid." In addition, the Oklahoman reports that the agency will eliminate a cost-of-living adjustment for nursing homes and a portion of the Medicaid benefit for dentures and glasses paid to the state's nursing homes (Hinton, Daily Oklahoman, 1/10). The Associated Press reports that the OHCA cuts are due to a decline in revenue coupled with a "sharp" rise in Medicaid enrollment. Between March 2001 and November 2001, enrollment in the program increased from 440,000 to 461,000. Anne Garcia, the agency's director of financial services, said, "Utilization of health care is on the rise," adding that the agency is $9.7 million over its Medicaid budget. If spending continued at its current rate, Garcia said, the program would "run out of money by Feb. 15" (Associated Press, 1/10). Garcia concluded, "There are not a lot of alternatives left regarding where cuts could be made. Our hope is that the Legislature will provide supplemental funding" when it convenes next month (Daily Oklahoman, 1/10).