States Diverting Medicaid Funds
Posted by Kim on April 20th, 2009 / 
Print This Post
Some states are using Federal Stimulus/Medicaid funds to fill gaps in budgets that have nothing to do with Medicaid- the program some of these funds is supposed to go to.
RI:
PROVIDENCE – Dozens of nurses and other caretakers could lose their jobs at nursing homes across Rhode Island – one of the state’s few growth industries – as funding is cut to close ballooning state budget deficits.
A plan enacted this month trims about $5 million in Medicaid payments for nursing homes – roughly 2 percent of what officials originally planned to spend on nursing care for the fiscal year ending in June. Governor Don Carcieri, a Republican, and state lawmakers made the cut to help close a massive budget deficit brought on by 10.5 percent unemployment, a plummeting housing market, and slumping tax revenues.
Meanwhile, eight other states might divert stimulus Medicaid funds to fill budget holes as well:
WASHINGTON, D.C.— Some states may be diverting Medicaid funds from the economic stimulus package to projects unrelated to caring for seniors, according to a report from Rep. Darrell Issa (R-Calif.), House Committee on Oversight and government reform ranking member. Issa is calling for broader federal oversight to ensure monies are being used appropriately.
In a recent statement, the American Health Care Association has pointed out that stimulus resource diversion could force state Medicaid programs into decreasing reimbursements to healthcare providers.
Issa’s study, “De-Targeting the Stimulus: States Diverting Medicaid Funds Away from Helping Poor, Protecting Health Care Jobs,” cites eight states—New York, Michigan, Virginia, West Virginia, Kansas, Indiana, Florida, and Nevada—that are likely to use Medicaid stimulus funding to fill budget gaps.
Report HERE…PDF
This all means no raises; it also means potential lay offs at nursing homes. Just when we think this profession is recession-proof…
April 20th, 2009 at 11:01 am
I think I read, recently at PHI perhaps, that MA is cutting funding to programs that will require placement of people into nursing homes. Home care options are also on the block. It all stinks. I beleieve in that article it said something about aides being laid off.
April 21st, 2009 at 10:59 am
Yes MA made some big cuts and it has/will affect over 5000 people who now live in their own homes, with the help of HHA’s and others who provide support services. These cuts will also result in many HHA’s being laid off.