Louisiana Health Department Proposes Cuts to Medicaid To Help Close State Budget Gap

To close Louisiana's $75 million budget gap, Gov. Mike Foster (R) has ordered the Louisiana Department of Health and Hospitals to cut $48.4 million in state funds from its budget, the Baton Rouge Advocate reports. The health department has proposed the following changes to Medicaid:

Limiting the number of prescriptions a Medicaid beneficiary can fill to six from unlimited to save $18 million. According to DHH Secretary David Hood, beneficiaries may get extra prescriptions with prior approval;
Reducing by $8.8 million payments to private nursing homes for construction and improvements;
Trimming by $8 million, or 3.4%, in the amount of funds DHH gives to charity hospitals for indigent care;
Cutting $7 million in "bonus payments" to public hospitals, which are participating in a program to get more federal health funds for the state;
Cutting $4.6 million to settle pre-1995 Medicaid payment claims filed by hospitals and deferring those payments to a different budget year;
Reducing by $1.1 million "extra funding" for hospitals that provide neo-natal intensive care services; and
Eliminating a reimbursement increase for long-term care hospitals to save $900,000.

When accounting for federal matching funds, the proposed reductions would total $168 million. "These cuts have been thought through. It doesn't mean they are painless or pretty, but in continuing to make progress, this is the best of all possible worlds," Hood said. Funds for preventative and primary care, as well as community-based services, were not reduced because the DHH "puts a priority" on the programs. However, community initiatives "may not fare as well" in a second round of cuts Foster is expected to order because of deteriorating state revenues, Hood said, the Advocate reports (Shuler, Baton Rouge Advocate, 10/17). This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.

Louisiana Health Department Proposes Cuts to Medicaid To Help Close State Budget Gap

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