Georgia Community Health Department Approves Cuts to Medicaid Program

The Georgia Department of Community Health board on Wednesday tentatively approved proposed cuts to the state's Medicaid program, which could mean about 27,000 people would be dropped from the program and others would lose coverage for certain services, the Atlanta Journal-Constitution reported. The cuts are in response to Gov. Sonny Perdue's (R) call for all state agencies to reduce their spending by 2.5% for the rest of the fiscal year, which ends June 30, and make an additional 5% reduction in fiscal year 2004 (Miller, Atlanta Journal-Constitution, 10/9). The cuts would amount to $454 million over the next two years, including $188 million in state funds. Georgia's Medicaid and CHIP programs face a projected budget deficit of $493 million, including $190 million in state funds, in fiscal year 2004 (Kaiser Daily Health Policy Report, 9/12). Community Health Commissioner Tim Burgess said that the agency took "a broad-based approach" to identifying areas of reductions, adding that the "most difficult decision" was opting to limit Medicaid eligibility for pregnant women and for children in families with household incomes up to 185% of federal poverty level, the Journal-Constitution reports. The proposed cuts also would reduce eligibility for PeachCare, the state's CHIP program, from 235% of the poverty level to 200%. According to budget documents, about 39,000 of the 187,000 children enrolled in PeachCare would lose coverage as a result. Children remaining in PeachCare would lose coverage for dental and vision care. Victoria Wachino, associate director of the Kaiser Commission on Medicaid and the Uninsured, said, "It's unusual for a state that has made a lot of progress on covering kids, like Georgia has, to make a U-turn." Further proposed cuts would mean that nursing home residents who are considered "medically needy" would no longer be able to receive coverage for nursing home care. The proposed cuts also would decrease Medicaid payments to doctors and nursing homes; David Cook, the executive director of the Medical Association of Georgia, suggested that such an action could "lead to fewer doctors accepting Medicaid patients." Consumer advocate Linda Lowe said, "What we're doing is increasing the number of uninsured." She said that the General Assembly and governor should instead "come up with revenue-enhancing alternatives," such as temporarily adopting a 1% sales tax or eliminating corporate tax loopholes. According to the Journal-Constitution, community health officials said that the cuts they proposed would make Georgia's coverage comparable to other Southeastern states' coverage (Atlanta Journal-Constitution, 10/9).

Journal-Constitution Editorial
If the proposed cuts are enacted, "Georgia will get sicker, tens of thousands of poor people and children will lose access to health care and doctors and hospitals that serve rural and inner-city areas may be forced to close their doors," a Journal-Constitution editorial states, adding, "And in the long run, the state won't save a dime" (Atlanta Journal-Constitution, 10/10).