Latest Medicaid shortfall won't prompt cuts

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Posted: Jan 3, 2011 6:04 PM
Updated: Jan 3, 2011 6:04 PM
Source: Associated Press

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Topics: baton, rouge, state, health, department, dollars, reshuffle, shortfall, medicaid, cuts, hospitals, wbrz, louisiana

BATON ROUGE - The state health department will reshuffle dollars within its budget to fill a new $19 million shortfall that has emerged in the state's Medicaid program, without making new budget cuts.

The department also plans to reverse cuts to the Medicaid rates paid to hospitals for taking care of pregnant women and sick babies.

Gov. Bobby Jindal announced the developments Monday after meeting with Louisiana's hospital leaders about financing plans, amid complaints that continued cuts to the Medicaid program are damaging services and patient care.

The latest deficit in the program was caused by more people using Medicaid services than expected. It comes on top of a $50 million deficit earlier this year that prompted budget cuts in the Department of Health and Hospitals.

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