Mississippi Governor Signs Bill To Partially Cover Medicaid Program’s Budget Shortfall

Mississippi Gov. Ronnie Musgrove (D) on March 6 signed two bills that will cover most of the state's $158 million Medicaid budget deficit until the end of the fiscal year on June 30, the AP/Memphis Commercial Appeal reports. Musgrove signed the legislation just hours after it was approved by the Mississippi Legislature. The governor said that the measures will cover all but $29.5 million of the budget shortfall, adding that additional cuts will need to be made over the next few months. The first bill (HB 1200) cuts Medicaid provider fees by 5% and increases from $1 to $3 beneficiaries' copayments for prescription drugs. In addition, the bill cuts the number of prescriptions that beneficiaries may fill each month. The AP/Commercial Appeal does not report how many prescriptions beneficiaries will be permitted to fill each month. The second bill (HB 1814) transfers $108 million from the state's tobacco settlement trust fund to the Medicaid program. With both bills signed, the state will be able to make belated payments to providers this week (Wagster, AP/Memphis Commercial Appeal, 3/7). Last week, after the state Senate rejected a similar bailout plan -- which had been passed by the House -- state Medicaid Director Rica Lewis-Payton said that she did not have the authority to spend any more state funds or use federal matching funds to pay providers this week (Kaiser Daily Health Policy Report, 3/4). The plan rejected by the state Senate last week had included new fees for pharmacists, hospitals and nursing homes, which were taken out in the version approved by the Legislature and the governor.

Only a 'Short-Term' Solution?
The AP/Commercial Appeal reports that some lawmakers said the legislative fixes were "not well planned" and would provide only a temporary solution. Some legislators also criticized the payment cut to providers and called the increased copayments "unacceptable." State Sen. Willie Simmons (D) said, "This piece of legislation ... is setting the stage for more cuts to come." Lewis-Payton said that although she is "relieved" that providers will be paid, lawmakers should not have cut payments. "We need ways to encourage providers to participate in the program and [cutting payments] does not assist in that goal," she added (AP/Memphis Commercial Appeal, 3/7).