South Carolina Governor, Health Advocates Say House Republicans’ Proposed Medicaid Budget Too Small

South Carolina House Republicans on March 11 released a budget plan that would "shore up" the state's Medicaid program by increasing funding by $58 million, on top of $57 million previously allocated to the program, the Columbia State reports. The plan would shift the $58 million from the state's tobacco settlement fund and would use the majority of the funds ($51 million) to maintain current Medicaid services. Another portion of the funds ($4 million) would cover the cost of services provided to Medicaid beneficiaries through the Department of Mental Health (Harris, Columbia State, 3/12). The House Republicans plan also includes a provision that would require Medicaid beneficiaries to reapply for the program every six months, a move designed to save about $20 million per year (Maze/Wise, Charleston Post and Courier, 3/12). After House Republicans released their plan, Gov. Jim Hodges (D) said it was a "slight step in the right direction," but he added that the funding amount would not be enough to prevent service cuts (Charleston Post and Courier, 3/12). Officials at the state Department of Human Services had sought a total of $185 million in permanent funding, $138 million of which would replace temporary funding received during this fiscal year and $47 million of which would "pay for growth" in Medicaid. Even with the additional $58 million, the House Republicans' budget falls about $70 million short of the health department's request (Columbia State, 3/12). Hodges said the Republicans' budget plan could result in cuts to the state's CHIP program and prescription drug program for seniors. The governor added, "I don't think we need to balance the budget on the back of health care." For his part, Hodges has proposed using money from trust funds for other parts of the state budget to provide Medicaid with extra funding (Charleston Post and Courier, 3/12). The Alliance for South Carolina's Children also criticized the Republican plan because it would require cuts in services for children with disabilities (Freiden, Columbia State, 3/13).