Welfare Watch - June 28, 2010 - Possible Medicaid Service Cut

On Thursday of last week, the Senate failed to pass the much needed American Jobs and Closing Tax Loopholes Act (H.R. 4213).  Included in the original bill of  this Act would have been enhanced Medicaid funding that many states including Georgia counted on in order to balance their budgets for the upcoming fiscal year.  In fact, the Senate took the Medicaid funding out of the bill in order to get support for the bill.  It still failed to pass by 60 votes.  Both Georgia Senators Chambliss and Isakson voted against this bill. 

Without passage of this legislation 30 states that have built their state budgets around the assumption that enhanced Medicaid funding will be available till June 2011.  Georgia's budget which begins July 1, 2010 includes $750 million of these enhanced Medicaid funds called enhanced FMAP.  The failure to pass this bill will put half of this amount in jeopardy if this bill is not passed with the enhanced funding. 

Without these funds, Georgia's Medicaid budget will be in serious trouble.  Additional revenues would have to be found which Georgia's Legislature has made no provision for.  Other alternatives could include provider rate cuts as much as 20%, or cuts in eligibility of services.  The trickle down results of these kinds of cuts would be devastating.  Hospitals closing, doctors denying service to Medicaid patients, and providers limiting Medicaid services could become a reality. 

These Federal stimulus funds were designed to stimulate the economy, which most experts agree has happened.  Cuts of this magnitude would certainly impact those who depend on these services and the local economies that depend on the healthcare sector for jobs.

Congress needs to extend the funding for an additional six months.  This extension would preserve Georgia's budget at least until the Legislature can reconvene to find additional revenues or other budget fixes caused by the worst economic crisis in 70 years.  

Contact Senator Isakson and Chambliss with your concerns and their need to support this legislation that includes enhanced FMAP funds.  

Senator Chambliss: (1-800) 234-4208
Senator Isakson: (202) 224-3643

Call today. 

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Welfare Watch, an email newsletter of the
Georgia Association of Homes
and Services for Children
as a public service.
http://www.gahsc.org
Normer Adams, Editor
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