Mississippi Lawmakers Approve FY 2003 Medicaid Budget; Officials, Governor Say Funds Fall Short

Mississippi legislators on April 1 voted to appropriate $415 million in state funds for Medicaid during the fiscal year that begins July 1, nearly $121 million less than what Medicaid officials say is required, the Memphis Commercial Appeal reports. The vote, 105-14 in the House and 38-6 in the Senate, "rais[es] the prospect of a gubernatorial veto" by Gov. Ronnie Musgrove (D), who has "made clear his distaste" for the appropriated funding. Taking into account a loss in federal matching funds, the state's Medicaid program would actually be short between $550 million and $600 million, Musgrove said. Musgrove added that because lawmakers have approved funding short of what officials say is necessary, they should provide direction as to what programs or services should be cut. But state Rep. Steve Holland (D) said legislators "could not muster the fortitude" to give the governor such guidance. The Commercial Appeal reports that pending legislation that would impose additional fees on health care providers could offset the cuts (Branson, Memphis Commercial Appeal, 4/2). Last year, legislators appropriated $250 million for Medicaid (Branson, Memphis Commercial Appeal, 3/30). However, the program ran a $158 million budget deficit, and last month, Musgrove signed legislation to cover all but $29.5 million of the budget deficit by using the state's tobacco settlement funds, imposing fee cuts on providers, increasing beneficiary copayments and reducing prescription benefits (Kaiser Daily Health Policy Report, 3/7).