LA Medicaid

Louisiana Medicaid Crisis – The Perfect Financial Storm

In the absence of any congressional intervention, Louisiana will experience a cataclysmic reduction of approximately $450-$550 million next state fiscal year that will grow to over a $1 billion reduction of federal funds the following year for Medicaid services.  Department of Health and Hospitals (DHH) Secretary Alan Levine has repeatedly indicated that this level of funding reduction would require the elimination of entire “optional” Medicaid programs and the discontinuation of Medicaid services to entire “optional” populations (i.e., beneficiaries).  

Current Legislation:

On November 6, 2009, U.S. Representative Joseph Cao, R-New Orleans, introduced House Resolution 4047  to adjust the calculation of a state’s FMAP when it is affected by a major natural disaster.

• ACTION ALERT – Medicaid Crisis: Call for Congressional Action 10.23.2009

Senator Mary Landrieu also responded by introducing an amendment to the Senate version of the Health Care Bill (H.R. 3962) to provide some relief to the reduction in federal funds through September 2012.  Senator Landrieu’s amendment has been estimated to provide between $100 - $300 million for Louisiana per year.  This amendment is still included in the bill currently being negogiated in Congress.

Representative Tammy Baldwin (WI) introduced the State Medicaid Assistance Extension Act of 2009 (H.R. 4263) that seeks to extend for 1 year the period of temporary increase in the Medicaid FMAP.

Louisiana also needs to become more efficient with its resources and discontinue its reliance on segregated large institutions.

Ø  Medicaid Crisis read specifics in article.

Ø  FMAP Brief from DHH Sept. 2009.

Ø  Resources

Medicaid Spending

Ø  Louisiana Ranking in Medicaid Spending for People with Developmental Disabilities 

•       Louisiana ranks among the bottom of states in how it uses Medicaid funds to support people with developmental disabilities in their own homes and communities.  Unfortunately, Louisiana uses vast resources to maintain large facilities that segregate its citizens from society while ranking among the bottom ten states in the use of funds to support people in their homes and communities where they want to live.