Mississippi Lawmaker Says Medicaid Program Will Need More Funds Than Officials Expect

Mississippi Medicaid officials are "asking for too little" funding from the state for the next fiscal year and will either have to "cut people off or cut off services," state House Public Health and Welfare Chair Bobby Moody (D) said last week, the AP/Memphis Commercial Appeal reports. During a joint Legislative Budget Committee meeting on Sept. 26, officials requested $425 million for the fiscal year beginning July 1, 2003, the same amount they requested for the current year. Moody said he is "skeptical" that the state can "get along" with that amount, considering that the cost of health care and the program's enrollment are increasing. The program also faces a projected $75 million budget deficit this year. Medicaid officials have been making cost reductions based on mandates passed by the Legislature and cost-cutting suggestions made by a commission appointed by Gov. Ronnie Musgrove (D), but they are unsure how to cover the remaining shortfall. House Appropriations Committee Chair Charlie Capps (D) said the state does not have enough money to cover the deficit. Mike Bailey, the agency's office manager for finance and administration, said the program is likely to run out of funds between April 2003 and June 2003. Sharon Reed, Medicaid deputy administrator, said, "We will continue our efforts to contain costs" (Wagster, AP/Memphis Commercial Appeal, 9/27).