Alabama Medicaid Budget Remains Unknown, Commissioner Says

Main Category: Medicare / Medicaid / SCHIP
Article Date: 04 Dec 2007 - 6:00 PDT

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Alabama lawmakers held a joint legislative meeting on Wednesday to discuss next year's Medicaid budget, but the state Medicaid commissioner said the amount of an expected reduction in federal funding remains unknown, the Mobile Press-Register reports. The $4.2 billion program is mostly funded by the federal government, but the state provided $470 million this year, more than a quarter of its general fund budget.

The loss of federal funds for Hurricane Katrina recovery efforts, as well as increased per capita income in the state, will result in a loss of federal dollars for the Medicaid program, but state Medicaid Commissioner Carol Hermann-Steckel said the amount of the reduction was unknown. Medicaid officials in October estimated a loss of at least $135 million in federal funding, but Hermann-Steckel refused to comment on the figure.

According to Hermann-Steckel, the Medicaid office is considering how inflation and cost-savings programs would affect each item on the budget (Lyman, Mobile Press-Register, 11/29). She added that she would not recommend any cuts in the program, for which one in four Alabama residents is eligible. In addition, she noted that there is no requirement for her to share the Medicaid budget plan with the Legislature until Gov. Bob Riley (R) submits his budget plan during the opening days of the legislative session that begins Feb. 5, 2008.

State Sen. Roger Bedford (D) said, "I'm very disappointed that a Cabinet member of this administration that controls 25% of the spending in the general fund budget is not able to present us with numbers 60 days out." He estimated a loss of up to $600 million in federal funds, but Hermann-Steckel disputed the numbers (Lowry, Huntsville Times, 11/29). Rep. Artur Davis (D-Ala.) said that the federal government had not taken adequate measures to make funding adjustments and "has been the model of irresponsibility in this area" (Mobile Press-Register, 11/29).

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