CBS reports that Medicaid spending in Texas is growing faster than tax revenue, which doesn’t bode well for providers expecting to receive reimbursement. An excerpt:
Monday’s testimony confirmed Gov. Rick Perry’s warning that Medicaid costs represent a major challenge to the state budget, and he called for lawmakers to get the program under control. But lawmakers are likely to have a hard time finding enough cuts in services and cost-savings to balance the budget when they meet again next year. The total shortfall could amount to more than $10 billion without significant changes to the program.
Last year, the Legislature cut about $15 billion in state spending and roughly $12 billion in services to balance the two-year budget. Medicaid represents about 20 percent of the state budget, and for every $1 Texas spends on the program, the federal government matches $1.47 to help cover the costs, many mandated by federal law.
According to the story, elderly and disabled Medicaid patients who go to the ER account for a third of Medicaid spending. The obvious solution would be to keep these recipients out of ERs and lessen the need for such care. Even so, providers in Texas will see reimbursement cuts.
California’s budget woes are well known, and these woes are felt by the long term health care industry. Reuters reports that state’s new budget includes cuts Medi-Cal, the state’s Medicaid program, and to nursing homes and home care services.
